HSY vs TR: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
HSY (The Hershey Company) and TR (Tootsie Roll Industries) share investment themes but are different businesses. The right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme.
HSY vs TR: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | HSY | TR | What it tells you |
|---|---|---|---|
| Trailing P/E | 23.91 | 30.97 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.10 | 0.39 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 17% of range | 48% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 7.66 | 3.09 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how HSY and TR affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. HSY and TR share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined HSY and TR exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does The Hershey Company (HSY) do?
The Hershey Company is the dominant confectionery maker in North America, built on a portfolio of iconic brands including Hershey's, Reese's, Kisses, Kit Kat (US license), Jolly Rancher, and Twizzlers. It reports across chocolate and sweets plus a growing salty-snacks and better-for-you portfolio (SkinnyPop, Dot's Homestyle Pretzels, Pirate's Booty, LesserEvil), and it generates more than $11 billion in annual revenue. As a consumer-staples business, Hershey has historically offered steady demand, pricing power from beloved brands, high margins, and a consistent, growing dividend, which is why many investors hold it as a defensive core holding rather than a fast grower.
What does Tootsie Roll Industries (TR) do?
Tootsie Roll Industries, Inc. is one of the oldest confectionery companies in the United States, best known for the Tootsie Roll and Tootsie Pop but owning a wide portfolio of heritage candy brands including Charms Blow Pop, Junior Mints, DOTS, Andes, Charleston Chew, Sugar Daddy, Dubble Bubble, Razzles, Cella's, and Nik-L-Nip. It manufactures and sells these products largely in the US, Canada, and Mexico through food and grocery brokers and directly to retailers across grocery, mass-merchandise, drug, and convenience channels. The business is defensive and slow-changing: candy demand is relatively steady through economic cycles, and Tootsie Roll competes mainly on brand recognition, distribution, and affordable price points rather than rapid innovation.
HSY vs TR: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- HSY drivers: Cocoa cost normalization and margin recovery; Pricing power from iconic brands.
- TR drivers: Durable, defensive brand portfolio; Fortress balance sheet and net cash.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The dominant risk is cocoa cost inflation: chocolate depends on a single volatile agricultural commodity, and the 2024 to 2025 spike showed how fast margins can compress, with management noting pricing has not yet fully offset costs. For TR, the main trade-off is slow growth and a rich valuation: Tootsie Roll often trades at a premium earnings multiple for a low-growth business, so even small disappointments can weigh on the stock.
HSY or TR: which should you pick?
HSY vs TR: the full fundamentals
HSY. These figures are approximate and tied to the asOf date; verify live numbers before acting. Hershey's earnings are unusually sensitive to cocoa prices, so 2025's depressed profits and 2026's guided rebound should be read as a recovery off a commodity-driven trough rather than a new steady-state run rate. Always check the latest reported results, guidance, and dividend before making any decision.
TR. Figures are approximate, tied to the asOf date, and should be verified against live filings before acting. Tootsie Roll is a low-growth, defensive staple that often carries a premium P/E, so the earnings multiple reflects quality and stability rather than growth. The dividend yield is modest, so the stock is held mainly for resilience and capital preservation. Treat all specific numbers as directional and confirm the latest quarterly report and declared dividend.
Headline figures (approximate, Jul 2026): HSY shows revenue (annual) ~$11 billion-plus, with 2026 net sales growth guided to roughly 4% to 5%, profitability High-margin staples business, but margins were compressed hard in 2025 by cocoa costs and are recovering in 2026, earnings trajectory Adjusted EPS fell sharply in 2025 on cocoa; management guides a large rebound (roughly 30%-plus adjusted EPS growth) for 2026 off the depressed base, valuation multiple Trades as a premium consumer-staples name; multiple can look full for a slow grower, and depends heavily on where cocoa-driven earnings settle; TR shows revenue trend Roughly $733 million in fiscal 2025; Q1 2026 sales around $152 million, up about 2% year over year (approximate, verify live), profitability Consistently profitable; fiscal 2025 net income near $100 million with EPS around $1.37; Q1 2026 earnings roughly flat (approximate), balance sheet Very strong: minimal debt and a large cash and short-term investment position, effectively net cash (directional, verify live), market cap Small to mid-cap, roughly around $3 billion in mid-2026 (approximate, verify live).
The bottom line: HSY vs TR
HSY and TR are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined HSY and TR exposure against your real portfolio. It is not an investment adviser.
Wondering how HSY or TR fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in The Hershey Company with AI
Connect the broker you already use and ask Walnut's AI how HSY fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between HSY and TR?
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The Hershey Company is the dominant confectionery maker in North America, built on a portfolio of iconic brands including Hershey's, Reese's, Kisses, Kit Kat (US license), Jolly Rancher, and Twizzlers. Tootsie Roll Industries, Inc. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is HSY or TR the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, HSY or TR?
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A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both HSY and TR?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of HSY vs TR?
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HSY: The dominant risk is cocoa cost inflation: chocolate depends on a single volatile agricultural commodity, and the 2024 to 2025 spike showed how fast margins can compress, with management noting pricing has not yet fully offset costs. Aggressive price increases risk softening volumes as shoppers trade down or buy less, and chocolate volume declines have already been a concern. Broader input, tariff, and packaging costs add pressure, and health and sugar-reduction trends are a slow structural headwind for confectionery. Hershey also carries meaningful controlling-shareholder dynamics through the Hershey Trust, which can affect governance and strategic flexibility. Finally, as a mature staples name, growth is modest, so the stock can lag in strong bull markets even when the business is healthy, and its valuation can look full for a slow grower. TR: The main trade-off is slow growth and a rich valuation: Tootsie Roll often trades at a premium earnings multiple for a low-growth business, so even small disappointments can weigh on the stock. Input-cost inflation in sugar, cocoa, and packaging can compress margins if the company cannot fully pass costs through, and it competes against far larger, better-resourced players like Hershey, Mars, and Mondelez that have bigger marketing and innovation budgets. Long-term shifts toward health-conscious eating and reduced sugar consumption are a slow structural headwind for the whole candy category. Family control and a low public float mean minority shareholders have limited influence over strategy and capital allocation, and the stock can be less liquid than its market value implies. Finally, the modest cash dividend yield means income investors get relatively little current payout, and the annual stock dividend does not add fundamental value on its own. None of these are acute crises, but together they cap the upside.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell HSY or TR; figures are approximate and dated (as of August 2026). Verify current data before investing.