Colgate-Palmolive (NYSE:CL) & Warby Parker (NYSE:WRBY) Head-To-Head Analysis

Colgate-Palmolive (NYSE:CL) and Warby Parker (NYSE:WRBY) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Colgate-Palmolive and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	10.04%	386.76%	17.89%
Warby Parker	0.15%	2.30%	1.18%

Institutional & Insider Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. Comparatively, 93.2% of Warby Parker shares are owned by institutional investors. 0.4% of Colgate-Palmolive shares are owned by company insiders. Comparatively, 16.8% of Warby Parker shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Colgate-Palmolive and Warby Parker”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$20.38 billion	3.74	$2.13 billion	$2.57	37.03
Warby Parker	$871.91 million	3.58	$1.64 million	$0.02	1,458.75

Colgate-Palmolive has higher revenue and earnings than Warby Parker. Colgate-Palmolive is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Colgate-Palmolive has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Colgate-Palmolive and Warby Parker, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	0	7	12	0	2.63
Warby Parker	0	5	10	0	2.67

Colgate-Palmolive presently has a consensus target price of $95.88, suggesting a potential upside of 0.75%. Warby Parker has a consensus target price of $29.82, suggesting a potential upside of 2.20%. Given Warby Parker’s stronger consensus rating and higher possible upside, analysts plainly believe Warby Parker is more favorable than Colgate-Palmolive.

Summary

Colgate-Palmolive beats Warby Parker on 8 of the 14 factors compared between the two stocks.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.