Analyzing Unilever PLC (UL) and Avon Products (AVP)
Unilever PLC (NYSE: UL) and Avon Products (NYSE:AVP) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Insider and Institutional Ownership
7.3% of Unilever PLC shares are held by institutional investors. Comparatively, 84.2% of Avon Products shares are held by institutional investors. 1.0% of Unilever PLC shares are held by insiders. Comparatively, 1.3% of Avon Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Unilever PLC and Avon Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Unilever PLC has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Avon Products has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500.
Unilever PLC pays an annual dividend of $1.64 per share and has a dividend yield of 2.8%. Avon Products does not pay a dividend.
This is a summary of current ratings for Unilever PLC and Avon Products, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Unilever PLC currently has a consensus target price of $26.00, suggesting a potential downside of 55.92%. Avon Products has a consensus target price of $3.62, suggesting a potential upside of 42.39%. Given Avon Products’ higher possible upside, analysts plainly believe Avon Products is more favorable than Unilever PLC.
Valuation and Earnings
This table compares Unilever PLC and Avon Products’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Unilever PLC||$63.43 billion||2.62||$11.34 billion||N/A||N/A|
|Avon Products||$5.71 billion||0.20||$385.60 million||($0.19)||-13.37|
Unilever PLC has higher revenue and earnings than Avon Products.
Unilever PLC beats Avon Products on 9 of the 13 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.
Avon Products Company Profile
Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.
Receive News & Ratings for Unilever PLC Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Unilever PLC and related companies with MarketBeat.com's FREE daily email newsletter.