Avon Products (NYSE: AVP) and Revlon (NYSE:REV) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Avon Products and Revlon’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Avon Products $5.71 billion 0.18 $385.60 million ($0.19) -12.42
Revlon $2.65 billion 0.47 $293.10 million ($2.20) -10.70

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

Analyst Recommendations

This is a summary of current ratings and price targets for Avon Products and Revlon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avon Products 1 5 0 0 1.83
Revlon 0 1 0 0 2.00

Avon Products presently has a consensus target price of $3.62, suggesting a potential upside of 53.25%. Revlon has a consensus target price of $16.00, suggesting a potential downside of 32.06%. Given Avon Products’ higher probable upside, analysts clearly believe Avon Products is more favorable than Revlon.

Profitability

This table compares Avon Products and Revlon’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%
Revlon -4.35% -3.09% 0.63%

Institutional and Insider Ownership

84.2% of Avon Products shares are held by institutional investors. Comparatively, 14.0% of Revlon shares are held by institutional investors. 1.3% of Avon Products shares are held by company insiders. Comparatively, 78.0% of Revlon shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Avon Products has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Revlon has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Summary

Avon Products beats Revlon on 7 of the 12 factors compared between the two stocks.

About Avon Products

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.

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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