Procter & Gamble (NYSE: PG) and DS Healthcare Group (OTCMKTS:DSKX) are both non-cyclical consumer goods & services companies, but which is the better stock? 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

59.9% of Procter & Gamble shares are held by institutional investors. Comparatively, 0.0% of DS Healthcare Group shares are held by institutional investors. 0.4% of Procter & Gamble shares are held by insiders. Comparatively, 19.4% of DS Healthcare Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Procter & Gamble and DS Healthcare Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Procter & Gamble 1 9 6 0 2.31
DS Healthcare Group 0 0 0 0 N/A

Procter & Gamble currently has a consensus price target of $86.13, suggesting a potential upside of 4.55%. Given Procter & Gamble’s higher possible upside, equities research analysts plainly believe Procter & Gamble is more favorable than DS Healthcare Group.

Risk and Volatility

Procter & Gamble has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, DS Healthcare Group has a beta of 8.77, meaning that its share price is 777% more volatile than the S&P 500.

Earnings and Valuation

This table compares Procter & Gamble and DS Healthcare Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Procter & Gamble $65.06 billion 3.19 $15.33 billion $3.75 21.97
DS Healthcare Group $12.95 million 0.01 -$6.93 million ($0.28) -0.02

Procter & Gamble has higher revenue and earnings than DS Healthcare Group. DS Healthcare Group is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Procter & Gamble and DS Healthcare Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Procter & Gamble 15.34% 20.66% 8.99%
DS Healthcare Group -62.31% -1,304.25% -117.85%

Dividends

Procter & Gamble pays an annual dividend of $2.76 per share and has a dividend yield of 3.4%. DS Healthcare Group does not pay a dividend. Procter & Gamble pays out 73.6% of its earnings in the form of a dividend. Procter & Gamble has increased its dividend for 61 consecutive years.

Summary

Procter & Gamble beats DS Healthcare Group on 13 of the 16 factors compared between the two stocks.

About Procter & Gamble

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. 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 DS Healthcare Group

DS Healthcare Group, Inc., doing business as DS Laboratories, is a personal care, product development and marketing company. The Company develops and markets branded personal care products that address thinning hair conditions, skin care and other personal care needs. It develops technologies and products for hair care and personal care needs. Its technologies include Liposome Technology, which acts as a carrier agent, and is designed to enhance the act ion of the active ingredients in its products, and Nanosome Technology, which acts as a delivery vehicle, and is designed to infuse active compounds into targeted cells. The Company products are primarily sold under its DS Laboratories brand. It also sells certain products under its Polaris Labs and Sigma Skin brands. It markets and sells these products through salons, spas, department stores, specialty retailers and distributors. The Company offers products under three product categories: Hair Care, Skin Care and Personal Care.

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