Colgate-Palmolive (CL) vs. Nu Skin Enterprises (NUS) Financial Review
Colgate-Palmolive (NYSE: CL) and Nu Skin Enterprises (NYSE:NUS) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
Earnings & Valuation
This table compares Colgate-Palmolive and Nu Skin Enterprises’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Colgate-Palmolive||$15.18 billion||4.35||$4.42 billion||$2.69||27.87|
|Nu Skin Enterprises||$2.18 billion||1.54||$326.95 million||$2.95||21.56|
Colgate-Palmolive has higher revenue and earnings than Nu Skin Enterprises. Nu Skin Enterprises is trading at a lower price-to-earnings ratio than Colgate-Palmolive, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Colgate-Palmolive has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Nu Skin Enterprises has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
This table compares Colgate-Palmolive and Nu Skin Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nu Skin Enterprises||7.53%||24.14%||11.26%|
This is a breakdown of current recommendations for Colgate-Palmolive and Nu Skin Enterprises, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nu Skin Enterprises||2||2||2||0||2.00|
Colgate-Palmolive presently has a consensus target price of $76.38, indicating a potential upside of 1.90%. Nu Skin Enterprises has a consensus target price of $60.67, indicating a potential downside of 4.61%. Given Colgate-Palmolive’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Colgate-Palmolive is more favorable than Nu Skin Enterprises.
Colgate-Palmolive pays an annual dividend of $1.60 per share and has a dividend yield of 2.1%. Nu Skin Enterprises pays an annual dividend of $1.44 per share and has a dividend yield of 2.3%. Colgate-Palmolive pays out 59.5% of its earnings in the form of a dividend. Nu Skin Enterprises pays out 48.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Colgate-Palmolive has raised its dividend for 53 consecutive years and Nu Skin Enterprises has raised its dividend for 16 consecutive years. Nu Skin Enterprises is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
73.1% of Colgate-Palmolive shares are held by institutional investors. Comparatively, 79.2% of Nu Skin Enterprises shares are held by institutional investors. 1.0% of Colgate-Palmolive shares are held by insiders. Comparatively, 5.2% of Nu Skin Enterprises 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.
Colgate-Palmolive beats Nu Skin Enterprises on 11 of the 17 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 Nu Skin Enterprises
Nu Skin Enterprises, Inc. is a direct selling company that develops and distributes personal care products and nutritional supplements, and a range of other products and services. The Company offers anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands. The Nu Skin brand offers a range of products, including ageLOC Me customized skin care system, ageLOC Spa systems and ageLOC Transformation anti-aging skin care system. The Pharmanex product line includes ageLOC Youth nutritional supplement, ageLOC TR90 weight management and body shaping system, and LifePak nutritional supplements. The Company has operations in various geographic regions, including Greater China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa (EMEA). It is focused on offering ageLOC Youth nutritional supplement and ageLOC Me personalized skin care system. The Company also offers household products and technology services.
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