L’Oreal (OTCMKTS:LRLCY – Get Free Report) and Grocery Outlet (NASDAQ:GO – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
0.4% of L’Oreal shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 4.5% of Grocery Outlet shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
L’Oreal has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| L’Oreal | N/A | N/A | N/A |
| Grocery Outlet | -8.08% | 5.69% | 1.86% |
Analyst Ratings
This is a breakdown of current ratings and price targets for L’Oreal and Grocery Outlet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| L’Oreal | 1 | 6 | 5 | 1 | 2.46 |
| Grocery Outlet | 2 | 11 | 0 | 0 | 1.85 |
Grocery Outlet has a consensus target price of $10.32, indicating a potential upside of 27.07%. Given Grocery Outlet’s higher probable upside, analysts plainly believe Grocery Outlet is more favorable than L’Oreal.
Valuation & Earnings
This table compares L’Oreal and Grocery Outlet”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| L’Oreal | $49.83 billion | 4.42 | $6.93 billion | N/A | N/A |
| Grocery Outlet | $4.69 billion | 0.17 | -$224.91 million | ($3.88) | -2.09 |
L’Oreal has higher revenue and earnings than Grocery Outlet.
Summary
L’Oreal beats Grocery Outlet on 8 of the 13 factors compared between the two stocks.
About L’Oreal
L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men worldwide. The company operates through four divisions: Consumer Products, L'oréal Luxe, Professional Products, and Dermatological Beauty. It offers skincare, make-up, hair colourants, haircare, perfumes, and hygiene products. The company provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Magic Mask, Niley, Lancôme, Yves Saint Laurent, Armani, Kiehl's Since 1851, Helena Rubinstein, Biotherm, Shu Uemura, IT Cosmetics, Ralph Lauren Fragrance, Urban Decay, Mugler, Valentino, Viktor&Rolf, Azzaro, Prada, Cacharel, Maison Margela Fragrance, Diesel, Yue Sai, Atelier Colonge, Carita, Takami, Aesop, L'Oréal Professionnel Paris, Kérastase, Redken, Matrix, Pureology, Pulp Riot, La Roche-Posay, Vichy, CeraVe, SkinCeuticals, and Skinbetter Science brands. It sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.
About Grocery Outlet
Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.
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