Avon Products (NYSE: AVP) and Procter & Gamble Company (The) (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 profitabiliy, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

87.2% of Avon Products shares are held by institutional investors. Comparatively, 59.7% of Procter & Gamble Company (The) shares are held by institutional investors. 1.3% of Avon Products shares are held by insiders. Comparatively, 0.4% of Procter & Gamble Company (The) shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Avon Products and Procter & Gamble Company (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avon Products $5.71 billion 0.21 $385.50 million ($0.19) -14.63
Procter & Gamble Company (The) $65.06 billion 3.60 $17.51 billion $5.59 16.41

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

Profitability

This table compares Avon Products and Procter & Gamble Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avon Products -0.99% -3.68% -0.23%
Procter & Gamble Company (The) 23.56% 19.97% 8.86%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Avon Products and Procter & Gamble Company (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avon Products 0 5 1 0 2.17
Procter & Gamble Company (The) 2 9 5 0 2.19

Avon Products presently has a consensus price target of $4.58, indicating a potential upside of 64.87%. Procter & Gamble Company (The) has a consensus price target of $85.46, indicating a potential downside of 6.84%. Given Avon Products’ higher possible upside, research analysts plainly believe Avon Products is more favorable than Procter & Gamble Company (The).

Volatility & Risk

Avon Products has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Procter & Gamble Company (The) has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Dividends

Procter & Gamble Company (The) pays an annual dividend of $2.76 per share and has a dividend yield of 3.0%. Avon Products does not pay a dividend. Procter & Gamble Company (The) pays out 49.4% of its earnings in the form of a dividend. Avon Products has increased its dividend for 60 consecutive years.

Summary

Procter & Gamble Company (The) beats Avon Products on 10 of the 16 factors compared between the two stocks.

Avon Products Company Profile

Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.

Procter & Gamble Company (The) 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. The Company owns and operates approximately 20 manufacturing sites located in over 20 states in the United States. In addition, it owns and operates over 100 manufacturing sites in approximately 40 countries. 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.

Receive News & Ratings for Avon Products Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Avon Products Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.