Analyzing Henkel AG & Co. (OTCMKTS:HENKY) & Yatsen (NYSE:YSG)

Henkel AG & Co. (OTCMKTS:HENKY) and Yatsen (NYSE:YSG) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Henkel AG & Co. and Yatsen, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henkel AG & Co.	0	3	0	1	2.50
Yatsen	1	0	0	0	1.00

Valuation and Earnings

This table compares Henkel AG & Co. and Yatsen”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henkel AG & Co.	$23.36 billion	1.70	$2.17 billion	N/A	N/A
Yatsen	$464.90 million	0.86	-$97.02 million	($0.69)	-6.14

Henkel AG & Co. has higher revenue and earnings than Yatsen.

Profitability

This table compares Henkel AG & Co. and Yatsen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henkel AG & Co.	N/A	N/A	N/A
Yatsen	-11.54%	-15.36%	-11.80%

Risk & Volatility

Henkel AG & Co. has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -2.06, suggesting that its share price is 306% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Henkel AG & Co. shares are owned by institutional investors. 29.0% of Yatsen shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Henkel AG & Co. beats Yatsen on 10 of the 11 factors compared between the two stocks.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.

About Yatsen

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.