Head-To-Head Review: National Vision (NASDAQ:EYE) versus Procter & Gamble (NYSE:PG)

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Procter & Gamble and National Vision, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	9	11	0	2.55
National Vision	0	5	7	0	2.58

Procter & Gamble currently has a consensus price target of $161.06, suggesting a potential upside of 12.31%. National Vision has a consensus price target of $30.08, suggesting a potential upside of 77.27%. Given National Vision’s stronger consensus rating and higher possible upside, analysts clearly believe National Vision is more favorable than Procter & Gamble.

Insider & Institutional Ownership

65.8% of Procter & Gamble shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by company insiders. Comparatively, 2.4% of National Vision shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Procter & Gamble and National Vision’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	19.16%	32.00%	13.27%
National Vision	2.31%	6.41%	2.81%

Earnings and Valuation

This table compares Procter & Gamble and National Vision”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	3.96	$15.97 billion	$6.84	20.97
National Vision	$1.99 billion	0.68	$29.60 million	$0.57	29.77

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

Volatility and Risk

Procter & Gamble has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500. Comparatively, National Vision has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Summary

Procter & Gamble beats National Vision on 9 of the 14 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 National Vision

National Vision Holdings, Inc., through its subsidiaries, operates as an optical retailer in the United States. The company operates in two segments, Owned & Host and Legacy. It offers eyeglasses and contact lenses, and optical accessory products; provides eye exams through its America’s Best, Eyeglass World, Vista Optical, Fred Meyer, and Vista Optical military, as well as Vision Center branded stores; and offers health maintenance organization and optometric services. National Vision Holdings, Inc. was founded in 1990 and is headquartered in Duluth, Georgia.