Procter & Gamble (NYSE:PG) & Unicharm (OTCMKTS:UNICY) Critical Comparison

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

Risk & Volatility

Unicharm has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Dividends

Unicharm pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 2.6%. Unicharm pays out 30.8% of its earnings in the form of a dividend. Procter & Gamble pays out 65.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Procter & Gamble has raised its dividend for 70 consecutive years. Procter & Gamble is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Unicharm and Procter & Gamble’s net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Unicharm and Procter & Gamble”s gross revenue, earnings per share and valuation.

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of current ratings and target prices for Unicharm and Procter & Gamble, as provided by MarketBeat.com.

Procter & Gamble has a consensus target price of $170.57, suggesting a potential upside of 1.81%. Given Procter & Gamble’s stronger consensus rating and higher probable upside, analysts clearly believe Procter & Gamble is more favorable than Unicharm.

Summary

Procter & Gamble beats Unicharm on 15 of the 17 factors compared between the two stocks.

About Unicharm

(Get Free Report)

Unicharm Corporation engages in the manufacturing and sale of wellness, feminine, baby and children, kirei, and pet care products in Japan and internationally. The company's baby and child care products, including disposable diapers and wipes under the Moony, MamyPoko, Oyasumiman, and Torepanman brands; feminine care products comprise napkins, tampons, panty liners, sanitary short, panty liners, and other feminine care products under the Sofy, Center-In, and Unicharm brand names; and wellness care products include napkin-type incontinence pads, pants-type diapers, tape-type diapers, pants-type specialized urine pads, and tape-type specialized urine pads under the Lifree and Charmnap brand. It also provides masks under the Unicharm brand; home care products, including cleaning sheets under the Wave brand name; cosmetic cotton and wet wipes under the Silcot brand; and paper towels under the Cook Up brand name. In addition, the company offers pet care products that include pet foods, excrement cleanup sheets, system toilets, and disposable diapers under the Grand Deli, Best Balance, Physicalife Dog, Silver Plate, Aiken Genki, Manner Wear, Deo Sheet, Silver Spoon, AllWell, Physicalife Cat, Deo Toilet, Deo Sand, Deo Clean, and Neko Genki brands; and deodorizing beads. Further, it is involved in the manufacture and sale of industrial materials related products, etc., as well as food-packaging materials. Unicharm Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

About Procter & Gamble

(Get Free Report)

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.

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