Mondelez International Inc (MDLZ), General Mills, Inc. (GIS): How Should You Play Them?

Another big peer, General Mills, Inc. (NYSE:GIS), also has a higher PEG ratio than that of Mondelez. General Mills, Inc. (NYSE:GIS) is trading at $50 per share, with a total market cap of around $32.2 billion. It has the lowest EV multiple of 11.22, but the PEG ratio stayed at more than 2.4. In the first quarter 2013, General Mills, Inc. (NYSE:GIS) also reported a growing business performance across all segments. Its international sales grew as much as 24.5% to nearly $1.3 billion, while the U.S. Retail and the Bakeries and Foodservice segment increased by 2.1% and 0.1%, respectively. The segment’s operating profit rose by 11% to $749 million.

Income investors would like General Mills, Inc. (NYSE:GIS) because of its historical uninterrupted increasing dividend payment for the past 114 years. In March, the company announced a 15% increase in its dividend to $0.38 per share. At $50 per share, the dividend yield stays at more than 3%. Nestle offers a bit lower dividend yield at 2.5%, while Mondelez’s dividend yield stays in between at 2.7%.

My Foolish take

Income investors might like all three companies for their decent dividend yields. Among the three, I like Mondelez the most due to its global leading positions in several product categories, its lowest PEG ratio and the decent dividend yield. Indeed, Mondelez could be considered a good play on the growing food industry of the emerging markets.

The article A Good Food Play on Fast Growing Emerging Markets originally appeared on Fool.com and is written by Anh HOANG.

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