Church & Dwight (NYSE: CHD) and Shiseido (OTCMKTS:SSDOY) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Volatility and Risk
Church & Dwight has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Shiseido has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Institutional & Insider Ownership
83.6% of Church & Dwight shares are owned by institutional investors. Comparatively, 0.1% of Shiseido shares are owned by institutional investors. 2.0% of Church & Dwight shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Church & Dwight and Shiseido’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Church & Dwight||$3.78 billion||3.21||$743.40 million||$2.92||16.99|
|Shiseido||$8.97 billion||2.60||$202.92 million||$0.49||118.73|
Church & Dwight has higher earnings, but lower revenue than Shiseido. Church & Dwight is trading at a lower price-to-earnings ratio than Shiseido, indicating that it is currently the more affordable of the two stocks.
Church & Dwight pays an annual dividend of $0.87 per share and has a dividend yield of 1.8%. Shiseido does not pay a dividend. Church & Dwight pays out 29.8% of its earnings in the form of a dividend. Church & Dwight has raised its dividend for 12 consecutive years.
This table compares Church & Dwight and Shiseido’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Church & Dwight||19.69%||24.95%||9.40%|
This is a summary of current ratings and price targets for Church & Dwight and Shiseido, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Church & Dwight||4||7||5||0||2.06|
Church & Dwight presently has a consensus price target of $51.77, indicating a potential upside of 4.33%. Given Church & Dwight’s higher probable upside, analysts clearly believe Church & Dwight is more favorable than Shiseido.
Church & Dwight beats Shiseido on 12 of the 16 factors compared between the two stocks.
About Church & Dwight
Church & Dwight Co., Inc. develops, manufactures and markets a range of household, personal care and specialty products. The Company’s segments include Consumer Domestic, Consumer International and Specialty Products Division (SPD). The Company also sells specialty products to industrial customers and distributors. The Consumer Domestic segment includes various brands, as well as other household and personal care products, such as KABOOM cleaning products, ARRID antiperspirant, CLOSE-UP and AIM toothpastes and SIMPLY SALINE nasal saline moisturizer. The Consumer International segment markets a range of personal care products, household and over-the-counter products in international markets, including Canada, France, China, Australia, the United Kingdom, Mexico and Brazil. The Company’s SPD segment is a producer of sodium bicarbonate, which it sells together with other specialty inorganic chemicals for various industrial, institutional, medical and food applications.
Shiseido Company, Limited is engaged in the business of the production and sale of cosmetics. The Company operates through two segments: Japan Business and Global Business. The Company’s Japan Business segment includes the Japan business, which includes the production and sale of cosmetics, cosmetics accessories and toiletries, and the healthcare business, which includes the production and sale of health and beauty foods, and over-the-counter drugs. The Japan Business segment is also engaged in the production and sale of non-Shiseido-brand products and mail-order products, and other businesses. The Company’s Global Business segment covers the overseas cosmetics business, which includes the production and sale of cosmetics, cosmetics accessories and toiletries, and the domestic and overseas professional business, which includes the production and sale of beauty salon products and other businesses. In addition, the Company is involved in the restaurant business.
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