Analyzing Tokyo Lifestyle (NASDAQ:TKLF) and Kenvue (NYSE:KVUE)

Tokyo Lifestyle (NASDAQ:TKLF) and Kenvue (NYSE:KVUE) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Dividends

Tokyo Lifestyle pays an annual dividend of $0.08 per share and has a dividend yield of 3.5%. Kenvue pays an annual dividend of $0.83 per share and has a dividend yield of 4.8%. Kenvue pays out 107.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenvue has increased its dividend for 1 consecutive years. Kenvue is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Tokyo Lifestyle and Kenvue”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Lifestyle	$302.54 million	0.03	$6.64 million	N/A	N/A
Kenvue	$15.12 billion	2.18	$1.47 billion	$0.77	22.29

Kenvue has higher revenue and earnings than Tokyo Lifestyle.

Volatility and Risk

Tokyo Lifestyle has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Kenvue has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Tokyo Lifestyle and Kenvue’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Lifestyle	N/A	N/A	N/A
Kenvue	9.72%	19.72%	7.72%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tokyo Lifestyle and Kenvue, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Lifestyle	1	0	0	0	1.00
Kenvue	0	13	3	0	2.19

Kenvue has a consensus target price of $19.58, suggesting a potential upside of 14.10%. Given Kenvue’s stronger consensus rating and higher possible upside, analysts plainly believe Kenvue is more favorable than Tokyo Lifestyle.

Insider and Institutional Ownership

97.6% of Kenvue shares are owned by institutional investors. 75.4% of Tokyo Lifestyle shares are owned by company insiders. Comparatively, 1.7% of Kenvue shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Kenvue beats Tokyo Lifestyle on 13 of the 15 factors compared between the two stocks.

About Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.