Avon Products (AVP) versus Unilever PLC (UL) Head to Head Analysis

Avon Products (NYSE: AVP) and Unilever PLC (NYSE:UL) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Avon Products and Unilever PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avon Products -0.99% -3.68% -0.23%
Unilever PLC N/A N/A N/A

Earnings & Valuation

This table compares Avon Products and Unilever PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avon Products $5.71 billion 0.19 $385.60 million ($0.19) -12.89
Unilever PLC $64.79 billion 2.49 $11.58 billion N/A N/A

Unilever PLC has higher revenue and earnings than Avon Products.

Risk & Volatility

Avon Products has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, Unilever PLC has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Dividends

Unilever PLC pays an annual dividend of $1.64 per share and has a dividend yield of 2.9%. Avon Products does not pay a dividend.

Insider & Institutional Ownership

84.2% of Avon Products shares are owned by institutional investors. Comparatively, 7.3% of Unilever PLC shares are owned by institutional investors. 1.3% of Avon Products shares are owned by insiders. Comparatively, 1.0% of Unilever PLC shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Avon Products and Unilever PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avon Products 1 5 0 0 1.83
Unilever PLC 3 3 3 0 2.00

Avon Products currently has a consensus price target of $3.62, suggesting a potential upside of 47.62%. Unilever PLC has a consensus price target of $26.00, suggesting a potential downside of 54.74%. Given Avon Products’ higher possible upside, analysts plainly believe Avon Products is more favorable than Unilever PLC.

Summary

Unilever PLC beats Avon Products on 9 of the 13 factors compared between the two stocks.

About Avon Products

Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.

About Unilever PLC

Unilever PLC is a fast-moving consumer goods (FMCG) company. The Company’s segments include Personal Care, which primarily includes sales of skin care and hair care products, deodorants and oral care products; Foods, which primarily includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Home Care, which primarily includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products, and Refreshment, which primarily includes sales of ice cream and tea-based beverages. The Company’s geographical segments include Asia/AMET/RUB, The Americas and Europe. Its brands include Axe, Dirt is Good (Omo), Dove, Family Goodness (Rama), Heartbrand (Wall’s), Hellmann’s, Knorr, Lipton, Lux, Magnum, Rexona, Sunsilk and Surf. The Company operates in more than 100 countries, selling its products in more than 190 countries. The Company operates approximately 310 factories in over 70 countries.

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