Procter & Gamble (NYSE:PG) and Solesence (NASDAQ:SLSN) Financial Analysis

Solesence (NASDAQ:SLSN) and Procter & Gamble (NYSE:PG) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Solesence and Procter & Gamble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solesence	-3.40%	-11.58%	-3.79%
Procter & Gamble	18.44%	31.36%	13.09%

Valuation and Earnings

This table compares Solesence and Procter & Gamble”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solesence	$62.06 million	0.92	$1.79 million	($0.03)	-27.03
Procter & Gamble	$87.03 billion	3.94	$16.05 billion	$6.62	22.33

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

Insider and Institutional Ownership

70.2% of Solesence shares are held by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are held by institutional investors. 4.8% of Solesence shares are held by company insiders. Comparatively, 0.2% of Procter & Gamble shares are held by company 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 ratings and price targets for Solesence and Procter & Gamble, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solesence	1	0	0	0	1.00
Procter & Gamble	0	10	14	0	2.58

Procter & Gamble has a consensus target price of $161.70, suggesting a potential upside of 9.40%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, analysts clearly believe Procter & Gamble is more favorable than Solesence.

Risk & Volatility

Solesence has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Summary

Procter & Gamble beats Solesence on 11 of the 14 factors compared between the two stocks.

About Solesence

Nanophase Technologies Corporation provides engineered materials, formulation development, and commercial manufacturing with an integrated family of technologies in the United States. It offers surface engineered zinc oxide and titanium dioxide for sunscreens and personal care products; fully formulated cosmetics, sun care, and skin care under the Solésence brand name; and advanced materials products, such as architectural coatings, industrial coatings, abrasion-resistant additives, plastics additives, medical diagnostics, and various surface finishing technologies applications. The company was incorporated in 1989 and is headquartered in Romeoville, Illinois.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.