Procter & Gamble (NYSE:PG – Get Free Report) and Tokyo Lifestyle (NASDAQ:TKLF – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Earnings and Valuation
This table compares Procter & Gamble and Tokyo Lifestyle”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Procter & Gamble | $85.26 billion | 3.93 | $15.97 billion | $6.75 | 21.36 |
| Tokyo Lifestyle | $210.12 million | 0.04 | $6.64 million | N/A | N/A |
Profitability
This table compares Procter & Gamble and Tokyo Lifestyle’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Procter & Gamble | 19.30% | 32.21% | 13.36% |
| Tokyo Lifestyle | N/A | N/A | N/A |
Institutional & Insider Ownership
65.8% of Procter & Gamble shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by insiders. Comparatively, 75.4% of Tokyo Lifestyle shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Procter & Gamble pays an annual dividend of $4.22 per share and has a dividend yield of 2.9%. Tokyo Lifestyle pays an annual dividend of $0.08 per share and has a dividend yield of 3.8%. Procter & Gamble pays out 62.5% of its earnings in the form of a dividend. Procter & Gamble has raised its dividend for 70 consecutive years.
Analyst Recommendations
This is a summary of current recommendations and price targets for Procter & Gamble and Tokyo Lifestyle, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Procter & Gamble | 0 | 9 | 12 | 0 | 2.57 |
| Tokyo Lifestyle | 1 | 0 | 0 | 0 | 1.00 |
Procter & Gamble currently has a consensus price target of $167.06, indicating a potential upside of 15.86%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, research analysts clearly believe Procter & Gamble is more favorable than Tokyo Lifestyle.
Volatility & Risk
Procter & Gamble has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.
Summary
Procter & Gamble beats Tokyo Lifestyle on 12 of the 15 factors compared between the two stocks.
About Procter & Gamble
Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.
About Tokyo Lifestyle
Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.
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