Procter & Gamble Company (The) (NYSE: PG) and Matthews International Corporation (NASDAQ:MATW) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

59.5% of Procter & Gamble Company (The) shares are held by institutional investors. Comparatively, 79.0% of Matthews International Corporation shares are held by institutional investors. 0.4% of Procter & Gamble Company (The) shares are held by company insiders. Comparatively, 3.9% of Matthews International Corporation 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.

Earnings and Valuation

This table compares Procter & Gamble Company (The) and Matthews International Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Procter & Gamble Company (The) $65.06 billion 3.63 $17.51 billion $5.59 16.55
Matthews International Corporation $1.50 billion 1.28 $190.96 million $2.39 24.94

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

Dividends

Procter & Gamble Company (The) pays an annual dividend of $2.76 per share and has a dividend yield of 3.0%. Matthews International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Procter & Gamble Company (The) pays out 49.4% of its earnings in the form of a dividend. Matthews International Corporation pays out 28.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Procter & Gamble Company (The) has raised its dividend for 5 consecutive years and Matthews International Corporation has raised its dividend for 60 consecutive years.

Volatility and Risk

Procter & Gamble Company (The) has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Matthews International Corporation has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Procter & Gamble Company (The) and Matthews International Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Procter & Gamble Company (The) 2 9 4 0 2.13
Matthews International Corporation 0 0 3 0 3.00

Procter & Gamble Company (The) currently has a consensus price target of $85.03, indicating a potential downside of 8.08%. Matthews International Corporation has a consensus price target of $83.50, indicating a potential upside of 40.10%. Given Matthews International Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Matthews International Corporation is more favorable than Procter & Gamble Company (The).

Profitability

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

Net Margins Return on Equity Return on Assets
Procter & Gamble Company (The) 23.56% 19.97% 8.86%
Matthews International Corporation 5.17% 16.23% 5.40%

Summary

Procter & Gamble Company (The) beats Matthews International Corporation on 9 of the 17 factors compared between the two stocks.

About Procter & Gamble Company (The)

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.

About Matthews International Corporation

Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.

Receive News & Stock Ratings for Procter & Gamble Company (The) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Procter & Gamble Company (The) and related stocks with our FREE daily email newsletter.