Shareholders are hoping that Kraft Heinz Company’s (KHC) interest in buying Campbell Soup (CPB) is only a rumor that will not come to fruition. Kraft, whose shares yield a superior dividend yield (3.96 percent compared to 3.63 percent with Campbell Soup), better valuation in terms of P/E multiples, and is a fundamentally better company, is better off avoiding this processed and packaged good company. The soup company watered down its product, raised its concentration of salt, and worsened the taste. At least, that is how it tastes and why sales are slumping.
There are several more reasons Kraft should not buy Campbell Soup.
