Yatsen (NYSE:YSG) & Coty (NYSE:COTY) Head-To-Head Analysis

Yatsen (NYSE:YSG) and Coty (NYSE:COTY) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Yatsen and Coty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yatsen	1	0	0	0	1.00
Coty	2	10	1	0	1.92

Coty has a consensus target price of $3.35, indicating a potential downside of 17.70%. Given Coty’s stronger consensus rating and higher possible upside, analysts plainly believe Coty is more favorable than Yatsen.

Risk and Volatility

Yatsen has a beta of -1.58, suggesting that its share price is 258% less volatile than the S&P 500. Comparatively, Coty has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

42.4% of Coty shares are owned by institutional investors. 29.0% of Yatsen shares are owned by company insiders. Comparatively, 0.5% of Coty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Yatsen and Coty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yatsen	-4.63%	-7.26%	-5.42%
Coty	-9.74%	7.11%	2.28%

Valuation and Earnings

This table compares Yatsen and Coty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yatsen	$614.62 million	0.30	-$11.56 million	($0.32)	-6.06
Coty	$5.81 billion	0.62	-$604.80 million	($0.65)	-6.25

Yatsen has higher earnings, but lower revenue than Coty. Coty is trading at a lower price-to-earnings ratio than Yatsen, indicating that it is currently the more affordable of the two stocks.

Summary

Coty beats Yatsen on 9 of the 13 factors compared between the two stocks.

About Yatsen

Yatsen is a China-based beauty company that develops, markets and sells cosmetics and skincare products. Its portfolio includes makeup, facial care, body care and other personal-care products, with sales conducted through e-commerce platforms, direct-to-consumer channels and offline retail outlets. The company’s best-known brand is Perfect Diary, which offers color cosmetics and related beauty products. Yatsen has also developed and operated brands including Little Ondine, Abby’s Choice and Pink Bear, while expanding its skincare portfolio through brands such as Galénic, DR.WU and Eve Lom.

About Coty

Coty is a global beauty company that develops, manufactures, markets and distributes fragrances, cosmetics, skin care and body-care products. Its portfolio spans prestige and consumer beauty, with products sold in markets around the world. The company’s brands include CoverGirl, Rimmel London, Max Factor and Sally Hansen. Coty also produces fragrances and beauty products under license for a range of fashion and lifestyle brands. Founded in Paris in 1904 by perfumer François Coty, the company has grown from a fragrance business into a broad-based beauty group.