Coty (NYSE: COTY) is one of 26 publicly-traded companies in the “SOAPS/COSMETICS” industry, but how does it contrast to its competitors? We will compare Coty to related businesses based on the strength of its institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Volatility & Risk

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Coty has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Coty’s competitors have a beta of 0.35, suggesting that their average share price is 65% less volatile than the S&P 500.

Dividends

Coty pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Coty pays out -98.0% of its earnings in the form of a dividend. As a group, “SOAPS/COSMETICS” companies pay a dividend yield of 2.1% and pay out 55.6% of their earnings in the form of a dividend. Coty has raised its dividend for 3 consecutive years. Coty is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

69.2% of Coty shares are owned by institutional investors. Comparatively, 56.0% of shares of all “SOAPS/COSMETICS” companies are owned by institutional investors. 1.0% of Coty shares are owned by company insiders. Comparatively, 16.8% of shares of all “SOAPS/COSMETICS” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Coty and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Coty 2 6 7 0 2.33
Coty Competitors 307 1145 1131 29 2.34

Coty currently has a consensus target price of $19.71, indicating a potential upside of 7.38%. As a group, “SOAPS/COSMETICS” companies have a potential downside of 0.25%. Given Coty’s higher probable upside, equities analysts plainly believe Coty is more favorable than its competitors.

Valuation & Earnings

This table compares Coty and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Coty $7.65 billion -$422.20 million -36.00
Coty Competitors $15.45 billion $2.24 billion 25.57

Coty’s competitors have higher revenue and earnings than Coty. Coty is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Coty and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Coty -4.15% 4.45% 1.82%
Coty Competitors 0.18% 21.74% -3.77%

Summary

Coty competitors beat Coty on 8 of the 15 factors compared.

Coty Company Profile

Coty Inc., together with its subsidiaries, manufactures, markets, sells, and distributes beauty products worldwide. It operates in three segments: Consumer Beauty, Luxury, and Professional Beauty. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, body care products, and mass fragrances primarily through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, and traditional food and drug retailers, as well as own branded e-commerce and direct to consumer Websites. The Luxury segment provides prestige fragrances, and premium skincare and cosmetics products across various regions and luxury channels, including upscale perfumeries, upscale department stores and duty-free shops, and travel retail sales channels. The Professional Beauty segment offers hair and nail care, and other salon products to nail and hair salons, nail and hair professionals, and professionals stores. The company markets and sells its products under the Astor, Bourjois, Clairol, Coty, COVERGIRL, Joop!, Jovan, Lancaster, Manhattan, Max Factor, Nioxin, N.Y.C. New York Color, OPI, philosophy, Rimmel, Sally Hansen, System Professional, and Wella brands. Coty Inc. also sells its products through third-party distributors. The company was founded in 1904 and is headquartered in New York, New York.

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