Head-To-Head Contrast: Colgate-Palmolive (NYSE:CL) vs. Ollie’s Bargain Outlet (NASDAQ:OLLI)

Colgate-Palmolive (NYSE:CL) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Colgate-Palmolive and Ollie’s Bargain Outlet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	0	5	11	0	2.69
Ollie’s Bargain Outlet	0	4	12	0	2.75

Colgate-Palmolive currently has a consensus target price of $89.44, suggesting a potential upside of 5.13%. Ollie’s Bargain Outlet has a consensus target price of $142.14, suggesting a potential upside of 33.06%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher probable upside, analysts plainly believe Ollie’s Bargain Outlet is more favorable than Colgate-Palmolive.

Risk & Volatility

Colgate-Palmolive has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Colgate-Palmolive and Ollie’s Bargain Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$20.10 billion	3.41	$2.89 billion	$3.57	23.83
Ollie’s Bargain Outlet	$2.27 billion	2.88	$199.76 million	$3.62	29.51

Colgate-Palmolive has higher revenue and earnings than Ollie’s Bargain Outlet. Colgate-Palmolive is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Colgate-Palmolive and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	14.47%	333.39%	17.57%
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%

Insider & Institutional Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. 0.4% of Colgate-Palmolive shares are owned by insiders. Comparatively, 0.9% of Ollie’s Bargain Outlet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.