Procter & Gamble (NYSE: PG) and USANA Health Sciences (NYSE:USNA) are both non-cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

Procter & Gamble has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, USANA Health Sciences has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.

Dividends

Procter & Gamble pays an annual dividend of $2.76 per share and has a dividend yield of 3.1%. USANA Health Sciences does not pay a dividend. Procter & Gamble pays out 73.8% of its earnings in the form of a dividend. Procter & Gamble has increased its dividend for 60 consecutive years.

Profitability

This table compares Procter & Gamble and USANA Health Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Procter & Gamble 23.72% 20.35% 8.99%
USANA Health Sciences 8.79% 26.38% 19.20%

Valuation & Earnings

This table compares Procter & Gamble and USANA Health Sciences’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Procter & Gamble $65.06 billion 3.49 $15.33 billion $3.74 23.90
USANA Health Sciences $1.01 billion 1.72 $100.04 million $3.63 19.86

Procter & Gamble has higher revenue and earnings than USANA Health Sciences. USANA Health Sciences is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

60.6% of Procter & Gamble shares are owned by institutional investors. Comparatively, 43.9% of USANA Health Sciences shares are owned by institutional investors. 0.4% of Procter & Gamble shares are owned by insiders. Comparatively, 53.2% of USANA Health Sciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Procter & Gamble and USANA Health Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Procter & Gamble 2 9 6 0 2.24
USANA Health Sciences 0 0 1 0 3.00

Procter & Gamble presently has a consensus target price of $85.82, suggesting a potential downside of 3.99%. USANA Health Sciences has a consensus target price of $80.00, suggesting a potential upside of 10.96%. Given USANA Health Sciences’ stronger consensus rating and higher possible upside, analysts clearly believe USANA Health Sciences is more favorable than Procter & Gamble.

Summary

Procter & Gamble beats USANA Health Sciences on 10 of the 17 factors compared between the two stocks.

Procter & Gamble Company Profile

The Procter & Gamble Company is focused on providing branded consumer packaged goods to the consumers across the world. The Company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care, and Baby, Feminine & Family Care. The Company sells its products in approximately 180 countries and territories primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies. It offers products under the brands, such as Olay, Old Spice, Safeguard, Head & Shoulders, Pantene, Rejoice, Mach3, Prestobarba, Venus, Cascade, Dawn, Febreze, Mr. Clean, Bounty and Charmin.

USANA Health Sciences Company Profile

USANA Health Sciences, Inc. develops and manufactures science-based nutritional and personal care products. The Company operates as a direct selling company in two geographic regions: Americas and Europe, and Asia Pacific, which includes three sub-regions: Southeast Asia Pacific, Greater China and North Asia. Its product lines include USANA Nutritionals Essentials, Optimizers, Foods, Sense-beautiful science and All Other. Its USANA Nutritionals Essentials product line includes vitamin and mineral supplements that provide a foundation of total body nutrition for every age group beginning with children of approximately one year. Its Optimizers product line consists of targeted supplements designed to meet individual health and nutritional needs. Its Sense-beautiful science product line includes science-based, personal care products that support skin and hair by providing topical nourishment, moisturization and protection.

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