Unilever PLC (UL) versus Colgate-Palmolive (CL) Financial Analysis
Unilever PLC (NYSE: UL) and Colgate-Palmolive (NYSE:CL) are both large-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Insider and Institutional Ownership
7.3% of Unilever PLC shares are held by institutional investors. Comparatively, 73.2% of Colgate-Palmolive shares are held by institutional investors. 1.0% of Unilever PLC shares are held by company insiders. Comparatively, 1.0% of Colgate-Palmolive shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings for Unilever PLC and Colgate-Palmolive, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Unilever PLC presently has a consensus price target of $26.00, indicating a potential downside of 56.17%. Colgate-Palmolive has a consensus price target of $74.80, indicating a potential upside of 4.15%. Given Colgate-Palmolive’s stronger consensus rating and higher possible upside, analysts clearly believe Colgate-Palmolive is more favorable than Unilever PLC.
Valuation and Earnings
This table compares Unilever PLC and Colgate-Palmolive’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Unilever PLC||$63.43 billion||2.63||$11.34 billion||N/A||N/A|
|Colgate-Palmolive||$15.18 billion||4.17||$4.42 billion||$2.69||26.70|
Unilever PLC has higher revenue and earnings than Colgate-Palmolive.
Unilever PLC pays an annual dividend of $1.64 per share and has a dividend yield of 2.8%. Colgate-Palmolive pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Colgate-Palmolive pays out 59.5% of its earnings in the form of a dividend. Colgate-Palmolive has increased its dividend for 53 consecutive years.
Volatility & Risk
Unilever PLC has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
This table compares Unilever PLC and Colgate-Palmolive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Colgate-Palmolive beats Unilever PLC on 9 of the 16 factors compared between the two stocks.
Unilever PLC Company Profile
Unilever PLC is a fast-moving consumer goods (FMCG) company. The Company’s segments include Personal Care, which primarily includes sales of skin care and hair care products, deodorants and oral care products; Foods, which primarily includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Home Care, which primarily includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products, and Refreshment, which primarily includes sales of ice cream and tea-based beverages. The Company’s geographical segments include Asia/AMET/RUB, The Americas and Europe. Its brands include Axe, Dirt is Good (Omo), Dove, Family Goodness (Rama), Heartbrand (Wall’s), Hellmann’s, Knorr, Lipton, Lux, Magnum, Rexona, Sunsilk and Surf. The Company operates in more than 100 countries, selling its products in more than 190 countries. The Company operates approximately 310 factories in over 70 countries.
Colgate-Palmolive Company Profile
Colgate-Palmolive Company (Colgate) is a consumer products company. The Company operates in two product segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care product segment is operated through five geographic segments, which include North America, Latin America, Europe, Asia Pacific and Africa/Eurasia. The Company’s oral care products include Colgate Total, Colgate Sensitive Pro-Relief, Colgate Max Fresh and Colgate Optic White. The Company is also engaged in various product categories of the personal care market with operations in liquid hand soap, which it sells under the Palmolive, Protex and Softsoap brands. The Company manufactures and markets a range of products for the home care market, including Palmolive and Ajax dishwashing liquids, Fabuloso and Ajax household cleaners and Murphy’s Oil Soap. The Company, through its Hill’s Pet Nutrition segment (Hill’s), manufactures pet nutrition products for dogs and cats.
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