Church & Dwight (CHD) & Unilever (UL) Critical Contrast

Church & Dwight (NYSE: CHD) and Unilever (NYSE:UL) are both large-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

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This table compares Church & Dwight and Unilever’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Church & Dwight 19.71% 25.47% 9.21%
Unilever N/A N/A N/A

Analyst Ratings

This is a summary of recent ratings for Church & Dwight and Unilever, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Church & Dwight 4 6 6 0 2.13
Unilever 1 4 0 0 1.80

Church & Dwight currently has a consensus price target of $51.38, indicating a potential upside of 10.46%. Given Church & Dwight’s stronger consensus rating and higher possible upside, research analysts plainly believe Church & Dwight is more favorable than Unilever.

Dividends

Church & Dwight pays an annual dividend of $0.87 per share and has a dividend yield of 1.9%. Unilever pays an annual dividend of $1.90 per share and has a dividend yield of 3.4%. Church & Dwight pays out 44.8% of its earnings in the form of a dividend. Unilever pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Church & Dwight has increased its dividend for 12 consecutive years and Unilever has increased its dividend for 2 consecutive years.

Risk & Volatility

Church & Dwight has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Unilever has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

82.9% of Church & Dwight shares are owned by institutional investors. Comparatively, 6.4% of Unilever shares are owned by institutional investors. 2.0% of Church & Dwight shares are owned by insiders. Comparatively, 1.0% of Unilever shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Church & Dwight and Unilever’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Church & Dwight $3.78 billion 3.01 $743.40 million $1.94 23.98
Unilever $60.68 billion 1.13 $6.84 billion $2.53 21.91

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

Summary

Church & Dwight beats Unilever on 12 of the 17 factors compared between the two stocks.

About Church & Dwight

Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. The company operates through three segments: Consumer Domestic, Consumer International, and the Specialty Products Division. It offers baking soda, cat litter, carpet deodorization, and laundry detergent products under the ARM & HAMMER brand; condoms, lubricants, and vibrators TROJAN brand; stain removers, cleaning solutions, laundry detergents, dishwashing detergents, and bleach alternatives under the OXICLEAN brand; battery-operated and manual toothbrushes under the SPINBRUSH brand; home pregnancy and ovulation test kits under the FIRST RESPONSE brand; depilatories under the NAIR brand; oral analgesic products under the ORAJEL brand; laundry detergents under the XTRA brand; gummy dietary supplements under the L'IL CRITTERS and VITAFUSION brands; dry shampoos under the BATISTE brand; and water flossers and replacement showerheads under the WATERPIK brand. The company also provides specialty products, including animal productivity products, such as MEGALAC rumen bypass fat, a supplement, which enables cows to maintain energy levels during the period of high milk production; BIO-CHLOR and FERMENTEN, which are designed to help reduce health issues associated with calving, as well as provides needed protein; and CELMANAX refined functional carbohydrate, a yeast based prebiotic. In addition, it offers sodium bicarbonate for use in industrial markets; and cleaning and deodorizing products for use in office buildings, hotels, restaurants, and other facilities. The company sells its consumer products through supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and pet stores, and other specialty stores, as well as through Websites; and specialty products to industrial customers and livestock producers through distributors. The company was founded in 1846 and is headquartered in Ewing, New Jersey.

About Unilever

Unilever PLC operates in the fast-moving consumer goods industry worldwide. It operates through Personal Care, Home Care, Foods, and Refreshment segments. The Personal Care segment offers skin care and hair care products, deodorants, and oral care products. The Home Care segment provides home care products, including powders, liquids and capsules, soap bars, and various cleaning products. The Foods segment offers soups, bouillons, sauces, snacks, mayonnaise, salad dressings, and margarines and spreads. The Refreshment segment provides ice creams and tea-based beverages. The company was founded in 1885 and is headquartered in London, the United Kingdom.