Head to Head Analysis: Revlon (REV) versus Colgate-Palmolive (CL)

Colgate-Palmolive (NYSE: CL) and Revlon (NYSE:REV) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Colgate-Palmolive has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Revlon has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Insider and Institutional Ownership

73.6% of Colgate-Palmolive shares are held by institutional investors. Comparatively, 14.0% of Revlon shares are held by institutional investors. 1.0% of Colgate-Palmolive shares are held by company insiders. Comparatively, 78.0% of Revlon shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Colgate-Palmolive and Revlon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Colgate-Palmolive 15.10% 2,782.56% 20.45%
Revlon -5.27% -3.09% -1.11%

Dividends

Colgate-Palmolive pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Revlon does not pay a dividend. Colgate-Palmolive pays out 61.8% of its earnings in the form of a dividend. Revlon has raised its dividend for 53 consecutive years.

Earnings & Valuation

This table compares Colgate-Palmolive and Revlon’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Colgate-Palmolive $15.20 billion 4.23 $2.44 billion $2.59 28.27
Revlon $2.33 billion 0.50 -$21.90 million ($2.72) -8.11

Colgate-Palmolive has higher revenue and earnings than Revlon. Revlon is trading at a lower price-to-earnings ratio than Colgate-Palmolive, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Colgate-Palmolive and Revlon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colgate-Palmolive 0 12 4 0 2.25
Revlon 0 1 0 0 2.00

Colgate-Palmolive currently has a consensus target price of $76.23, suggesting a potential upside of 4.13%. Revlon has a consensus target price of $16.00, suggesting a potential downside of 27.44%. Given Colgate-Palmolive’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Colgate-Palmolive is more favorable than Revlon.

Summary

Colgate-Palmolive beats Revlon on 13 of the 16 factors compared between the two stocks.

About Colgate-Palmolive

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 Revlon

Revlon, Inc. manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company operates through four segments: Consumer, which includes cosmetics, hair color and hair care, beauty tools, anti-perspirant deodorants, fragrances and skincare products; Professional, which includes a line of products sold to hair and nail salons, and professional salon distributors, including hair color, shampoos, conditioners, styling products, nail polishes and nail enhancements; Elizabeth Arden, which include Elizabeth Arden, which produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand and Other, which includes the distribution of prestige, designer and celebrity fragrances, cosmetics and skincare products.

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