Colgate-Palmolive (NYSE: CL) is one of 32 public companies in the “Personal Products” industry, but how does it compare to its peers? We will compare Colgate-Palmolive to similar companies based on the strength of its analyst recommendations, institutional ownership, risk, profitability, dividends, earnings and valuation.

Volatility & Risk

Colgate-Palmolive has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Colgate-Palmolive’s peers have a beta of 1.09, meaning that their average stock price is 9% more volatile than the S&P 500.

Insider and Institutional Ownership

73.1% of Colgate-Palmolive shares are held by institutional investors. Comparatively, 57.5% of shares of all “Personal Products” companies are held by institutional investors. 1.0% of Colgate-Palmolive shares are held by company insiders. Comparatively, 15.4% of shares of all “Personal Products” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Colgate-Palmolive and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Colgate-Palmolive $15.18 billion $4.42 billion 26.87
Colgate-Palmolive Competitors $14.52 billion $2.92 billion 14.17

Colgate-Palmolive has higher revenue and earnings than its peers. Colgate-Palmolive is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Colgate-Palmolive and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colgate-Palmolive 0 11 2 0 2.15
Colgate-Palmolive Competitors 365 1097 1243 28 2.34

Colgate-Palmolive presently has a consensus target price of $74.91, suggesting a potential upside of 3.64%. As a group, “Personal Products” companies have a potential upside of 0.37%. Given Colgate-Palmolive’s higher possible upside, equities analysts clearly believe Colgate-Palmolive is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Colgate-Palmolive 15.83% 3,121.95% 20.57%
Colgate-Palmolive Competitors 6.14% 158.35% 7.90%

Dividends

Colgate-Palmolive pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Colgate-Palmolive pays out 59.5% of its earnings in the form of a dividend. As a group, “Personal Products” companies pay a dividend yield of 2.0% and pay out 46.2% of their earnings in the form of a dividend. Colgate-Palmolive has raised its dividend for 53 consecutive years.

Summary

Colgate-Palmolive beats its peers on 9 of the 15 factors compared.

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.

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