Albertsons Companies (NYSE:ACI – Get Free Report) and Colgate-Palmolive (NYSE:CL – Get Free Report) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Dividends
Albertsons Companies pays an annual dividend of $0.68 per share and has a dividend yield of 4.4%. Colgate-Palmolive pays an annual dividend of $2.12 per share and has a dividend yield of 2.3%. Albertsons Companies pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Colgate-Palmolive pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Albertsons Companies has increased its dividend for 1 consecutive years and Colgate-Palmolive has increased its dividend for 63 consecutive years.
Institutional and Insider Ownership
71.3% of Albertsons Companies shares are owned by institutional investors. Comparatively, 80.4% of Colgate-Palmolive shares are owned by institutional investors. 1.4% of Albertsons Companies shares are owned by insiders. Comparatively, 0.4% of Colgate-Palmolive 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 & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Albertsons Companies | $83.17 billion | 0.09 | $217.40 million | $0.32 | 48.05 |
| Colgate-Palmolive | $20.38 billion | 3.54 | $2.13 billion | $2.57 | 35.13 |
Colgate-Palmolive has lower revenue, but higher earnings than Albertsons Companies. Colgate-Palmolive is trading at a lower price-to-earnings ratio than Albertsons Companies, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Albertsons Companies and Colgate-Palmolive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Albertsons Companies | 3 | 4 | 10 | 0 | 2.41 |
| Colgate-Palmolive | 0 | 6 | 12 | 0 | 2.67 |
Albertsons Companies presently has a consensus target price of $21.31, suggesting a potential upside of 38.57%. Colgate-Palmolive has a consensus target price of $95.88, suggesting a potential upside of 6.20%. Given Albertsons Companies’ higher possible upside, research analysts clearly believe Albertsons Companies is more favorable than Colgate-Palmolive.
Profitability
This table compares Albertsons Companies and Colgate-Palmolive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Albertsons Companies | 0.26% | 42.75% | 4.24% |
| Colgate-Palmolive | 10.04% | 386.76% | 17.89% |
Risk and Volatility
Albertsons Companies has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.
Summary
Colgate-Palmolive beats Albertsons Companies on 11 of the 17 factors compared between the two stocks.
About Albertsons Companies
Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.
About Colgate-Palmolive
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.
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