Procter & Gamble (NYSE: PG) and DS Healthcare Group (OTCMKTS:DSKX) are both non-cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings and price targets for Procter & Gamble and DS Healthcare Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Procter & Gamble 2 7 7 0 2.31
DS Healthcare Group 0 0 0 0 N/A

Procter & Gamble presently has a consensus price target of $86.73, indicating a potential downside of 4.21%. Given Procter & Gamble’s higher probable upside, equities analysts clearly believe Procter & Gamble is more favorable than DS Healthcare Group.

Dividends

Procter & Gamble pays an annual dividend of $2.76 per share and has a dividend yield of 3.0%. DS Healthcare Group does not pay a dividend. Procter & Gamble pays out 73.8% of its earnings in the form of a dividend. Procter & Gamble has increased its dividend for 60 consecutive years.

Risk & Volatility

Procter & Gamble has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, DS Healthcare Group has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500.

Valuation and Earnings

This table compares Procter & Gamble and DS Healthcare Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Procter & Gamble $65.06 billion 3.53 $15.33 billion $3.74 24.21
DS Healthcare Group $12.95 million 0.04 -$6.93 million ($0.27) -0.07

Procter & Gamble has higher revenue and earnings than DS Healthcare Group. DS Healthcare Group is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Procter & Gamble and DS Healthcare Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Procter & Gamble 23.72% 20.35% 8.99%
DS Healthcare Group -62.31% -1,304.25% -117.85%

Institutional & Insider Ownership

59.6% of Procter & Gamble shares are held by institutional investors. Comparatively, 0.0% of DS Healthcare Group shares are held by institutional investors. 0.4% of Procter & Gamble shares are held by company insiders. Comparatively, 19.4% of DS Healthcare Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Procter & Gamble beats DS Healthcare Group on 13 of the 16 factors compared between the two stocks.

Procter & Gamble 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.

DS Healthcare Group Company Profile

DS Healthcare Group, Inc., doing business as DS Laboratories, is a personal care, product development and marketing company. The Company develops and markets branded personal care products that address thinning hair conditions, skin care and other personal care needs. It develops technologies and products for hair care and personal care needs. Its technologies include Liposome Technology, which acts as a carrier agent, and is designed to enhance the act ion of the active ingredients in its products, and Nanosome Technology, which acts as a delivery vehicle, and is designed to infuse active compounds into targeted cells. The Company products are primarily sold under its DS Laboratories brand. It also sells certain products under its Polaris Labs and Sigma Skin brands. It markets and sells these products through salons, spas, department stores, specialty retailers and distributors. The Company offers products under three product categories: Hair Care, Skin Care and Personal Care.

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