Colgate-Palmolive (NYSE: CL) and LVMH Moet Hennessy Louis Vuitton (OTCMKTS:LVMUY) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
73.6% of Colgate-Palmolive shares are owned by institutional investors. Comparatively, 0.4% of LVMH Moet Hennessy Louis Vuitton shares are owned by institutional investors. 1.0% of Colgate-Palmolive shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Colgate-Palmolive and LVMH Moet Hennessy Louis Vuitton’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LVMH Moet Hennessy Louis Vuitton||N/A||N/A||N/A|
Earnings & Valuation
This table compares Colgate-Palmolive and LVMH Moet Hennessy Louis Vuitton’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Colgate-Palmolive||$15.45 billion||3.89||$2.02 billion||$2.28||30.13|
|LVMH Moet Hennessy Louis Vuitton||$48.16 billion||3.26||$5.79 billion||N/A||N/A|
LVMH Moet Hennessy Louis Vuitton has higher revenue and earnings than Colgate-Palmolive.
Volatility & Risk
Colgate-Palmolive has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, LVMH Moet Hennessy Louis Vuitton has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Colgate-Palmolive pays an annual dividend of $1.60 per share and has a dividend yield of 2.3%. LVMH Moet Hennessy Louis Vuitton pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Colgate-Palmolive pays out 70.2% of its earnings in the form of a dividend. Colgate-Palmolive has increased its dividend for 54 consecutive years. Colgate-Palmolive is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and price targets for Colgate-Palmolive and LVMH Moet Hennessy Louis Vuitton, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LVMH Moet Hennessy Louis Vuitton||0||2||2||0||2.50|
Colgate-Palmolive presently has a consensus price target of $77.36, suggesting a potential upside of 12.63%. Given Colgate-Palmolive’s higher possible upside, research analysts clearly believe Colgate-Palmolive is more favorable than LVMH Moet Hennessy Louis Vuitton.
Colgate-Palmolive beats LVMH Moet Hennessy Louis Vuitton on 10 of the 15 factors compared between the two stocks.
Colgate-Palmolive Company (Colgate) is a consumer products company. The Company operates in two product segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care product segment is operated through five geographic segments, which include North America, Latin America, Europe, Asia Pacific and Africa/Eurasia. The Company’s oral care products include Colgate Total, Colgate Sensitive Pro-Relief, Colgate Max Fresh and Colgate Optic White. The Company is also engaged in various product categories of the personal care market with operations in liquid hand soap, which it sells under the Palmolive, Protex and Softsoap brands. The Company manufactures and markets a range of products for the home care market, including Palmolive and Ajax dishwashing liquids, Fabuloso and Ajax household cleaners and Murphy’s Oil Soap. The Company, through its Hill’s Pet Nutrition segment (Hill’s), manufactures pet nutrition products for dogs and cats.
About LVMH Moet Hennessy Louis Vuitton
LVMH Moet Hennessy Louis Vuitton SE is a luxury goods company. Its business activities are divided into various business groups, including Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, Selective retailing and Other activities. The Company has approximately 70 brands and over 3,950 stores around the world. It produces still and sparkling wines from various wine-growing regions, as well as whiskey. The Fashion & Leather Goods business group includes brands, such as Louis Vuitton, Fendi, Donna Karan, Loewe, Marc Jacobs, Celine and Edun. It focuses on the perfumes, make-up and skincare business, and offers a range of brands, including Christian Dior, Guerlain and Kenzo. The Watches & Jewelry sector operates in two segments: high-quality watchmaking, and jewelry and high jewelry. Its Selective Retailing companies operate in Europe, North America, Asia and the Middle East. Its other activities include Les Echos group, Royal Van Lent and Cheval Blanc.
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