Kenvue (NYSE:KVUE) and Procter & Gamble (NYSE:PG) Head to Head Review

Procter & Gamble (NYSE:PG) and Kenvue (NYSE:KVUE) are both large-cap consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Insider and Institutional Ownership

65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 97.6% of Kenvue shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by company insiders. Comparatively, 1.6% of Kenvue shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Procter & Gamble and Kenvue”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$87.03 billion	3.87	$16.05 billion	$6.62	21.92
Kenvue	$15.12 billion	2.25	$1.47 billion	$0.87	20.39

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Procter & Gamble and Kenvue, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	11	13	0	2.54
Kenvue	0	12	3	0	2.20

Procter & Gamble currently has a consensus price target of $161.19, indicating a potential upside of 11.07%. Kenvue has a consensus price target of $19.27, indicating a potential upside of 8.67%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Procter & Gamble is more favorable than Kenvue.

Risk and Volatility

Procter & Gamble has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Kenvue has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Profitability

This table compares Procter & Gamble and Kenvue’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%
Kenvue	10.76%	21.22%	8.37%

Dividends

Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 3.0%. Kenvue pays an annual dividend of $0.84 per share and has a dividend yield of 4.7%. Procter & Gamble pays out 65.7% of its earnings in the form of a dividend. Kenvue pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Procter & Gamble has increased its dividend for 70 consecutive years and Kenvue has increased its dividend for 1 consecutive years.

Summary

Procter & Gamble beats Kenvue on 13 of the 17 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 Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.