Yatsen (NYSE:YSG – Get Free Report) and Procter & Gamble (NYSE:PG – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
65.8% of Procter & Gamble shares are held by institutional investors. 29.0% of Yatsen shares are held by insiders. Comparatively, 0.2% of Procter & Gamble shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for Yatsen and Procter & Gamble, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Yatsen | 1 | 0 | 0 | 0 | 1.00 |
| Procter & Gamble | 0 | 9 | 11 | 0 | 2.55 |
Risk and Volatility
Yatsen has a beta of -1.65, suggesting that its share price is 265% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.
Profitability
This table compares Yatsen and Procter & Gamble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Yatsen | -3.04% | -4.52% | -3.46% |
| Procter & Gamble | 19.16% | 32.00% | 13.27% |
Valuation and Earnings
This table compares Yatsen and Procter & Gamble”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Yatsen | $614.62 million | 0.45 | -$11.56 million | ($0.13) | -22.46 |
| Procter & Gamble | $84.28 billion | 4.08 | $15.97 billion | $6.84 | 21.57 |
Procter & Gamble has higher revenue and earnings than Yatsen. Yatsen is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.
Summary
Procter & Gamble beats Yatsen on 13 of the 14 factors compared between the two stocks.
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.
About Procter & Gamble
Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.
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