Head to Head Comparison: Herbalife LTD. (HLF) and Procter & Gamble Company (The) (PG)
Herbalife LTD. (NYSE: HLF) and Procter & Gamble Company (The) (NYSE:PG) are both mid-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Procter & Gamble Company (The) pays an annual dividend of $2.76 per share and has a dividend yield of 3.0%. Herbalife LTD. does not pay a dividend. Procter & Gamble Company (The) pays out 49.4% of its earnings in the form of a dividend. Procter & Gamble Company (The) has raised its dividend for 60 consecutive years.
Valuation & Earnings
This table compares Herbalife LTD. and Procter & Gamble Company (The)’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Herbalife LTD.||$4.42 billion||1.44||$727.70 million||$4.76||14.18|
|Procter & Gamble Company (The)||$65.06 billion||3.61||$17.51 billion||$5.59||16.48|
Procter & Gamble Company (The) has higher revenue and earnings than Herbalife LTD.. Herbalife LTD. is trading at a lower price-to-earnings ratio than Procter & Gamble Company (The), indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Herbalife LTD. and Procter & Gamble Company (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Procter & Gamble Company (The)||2||8||7||0||2.29|
Herbalife LTD. presently has a consensus target price of $86.67, indicating a potential upside of 28.38%. Procter & Gamble Company (The) has a consensus target price of $87.93, indicating a potential downside of 4.54%. Given Herbalife LTD.’s stronger consensus rating and higher possible upside, analysts clearly believe Herbalife LTD. is more favorable than Procter & Gamble Company (The).
Insider & Institutional Ownership
59.3% of Procter & Gamble Company (The) shares are owned by institutional investors. 5.0% of Herbalife LTD. shares are owned by insiders. Comparatively, 0.4% of Procter & Gamble Company (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Herbalife LTD. has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Procter & Gamble Company (The) has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
This table compares Herbalife LTD. and Procter & Gamble Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Procter & Gamble Company (The)||23.56%||19.97%||8.86%|
Procter & Gamble Company (The) beats Herbalife LTD. on 10 of the 17 factors compared between the two stocks.
Herbalife LTD. Company Profile
Herbalife Ltd. is a global nutrition company. The Company develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, as well as personal care products. Its operating segments are based on geographical operations in six regions: North America; Mexico; South and Central America; Europe, the Middle East, and Africa (EMEA); Asia Pacific, and China. The Company categorizes its products into five groups: weight management, targeted nutrition, energy, sports and fitness, outer nutrition, and literature, promotional and other. As of December 31, 2016, it marketed and sold approximately 140 products encompassing over 4,700 stock keeping units (SKUs) globally. Its product categories include meal replacement; protein shakes; drink mixes; dietary and nutritional supplements containing herbs, vitamins, minerals and other natural ingredients; facial skin care; body care; hair care products; sales tools, and educational materials.
Procter & Gamble Company (The) Company Profile
The Procter & Gamble Company is focused on providing branded consumer packaged goods to the consumers across the world. The Company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care, and Baby, Feminine & Family Care. The Company sells its products in approximately 180 countries and territories primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies. It offers products under the brands, such as Olay, Old Spice, Safeguard, Head & Shoulders, Pantene, Rejoice, Mach3, Prestobarba, Venus, Cascade, Dawn, Febreze, Mr. Clean, Bounty and Charmin.
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