Procter & Gamble (NYSE:PG – Get Free Report) and Beauty Health (NASDAQ:SKIN – Get Free Report) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Procter & Gamble and Beauty Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Procter & Gamble | 18.44% | 31.36% | 13.09% |
| Beauty Health | -9.79% | -47.83% | -5.79% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Procter & Gamble and Beauty Health, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Procter & Gamble | 0 | 11 | 13 | 0 | 2.54 |
| Beauty Health | 1 | 5 | 1 | 0 | 2.00 |
Institutional & Insider Ownership
65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 93.3% of Beauty Health shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by insiders. Comparatively, 35.5% of Beauty Health shares are owned by 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 and Valuation
This table compares Procter & Gamble and Beauty Health”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Procter & Gamble | $87.03 billion | 3.88 | $16.05 billion | $6.62 | 21.95 |
| Beauty Health | $300.80 million | 0.30 | -$9.52 million | ($0.22) | -3.13 |
Procter & Gamble has higher revenue and earnings than Beauty Health. Beauty Health is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Procter & Gamble has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Beauty Health has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
Summary
Procter & Gamble beats Beauty Health on 10 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 Beauty Health
The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, extract, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a Delivery System designs to connects providers to the consumer's preferences to create a more personalized experience; consumables, such as single-use tips, solutions, and serums used to provide a hydrafacial treatment; SkinStylus SteriLock Microsystem, a microneedling device used for the treatment of enhancing appearance of surgical or traumatic hypertrophic scars on the abdomen and facial acne scarring in Fitzpatrick skin types I, II, and III; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.
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