Analyzing Unilever (UN) and Its Rivals

Unilever (NYSE: UN) is one of 32 publicly-traded companies in the “Personal Products” industry, but how does it compare to its peers? We will compare Unilever to similar companies based on the strength of its dividends, institutional ownership, profitability, earnings, risk, valuation and analyst recommendations.

Insider & Institutional Ownership

8.7% of Unilever shares are owned by institutional investors. Comparatively, 56.6% of shares of all “Personal Products” companies are owned by institutional investors. 15.4% of shares of all “Personal Products” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Unilever pays an annual dividend of $1.69 per share and has a dividend yield of 3.0%. As a group, “Personal Products” companies pay a dividend yield of 2.1% and pay out 52.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Unilever and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unilever 1 2 3 0 2.33
Unilever Competitors 362 1262 1527 24 2.38

As a group, “Personal Products” companies have a potential upside of 15.75%. Given Unilever’s peers stronger consensus rating and higher possible upside, analysts clearly believe Unilever has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Unilever and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Unilever $58.34 billion $5.74 billion N/A
Unilever Competitors $16.34 billion $2.21 billion 428.14

Unilever has higher revenue and earnings than its peers.

Profitability

This table compares Unilever and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unilever N/A N/A N/A
Unilever Competitors -23.34% 73.78% 1.23%

Risk & Volatility

Unilever has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Unilever’s peers have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Summary

Unilever peers beat Unilever on 8 of the 14 factors compared.

Unilever Company Profile

Unilever N.V. is a fast-moving consumer goods (FMCG) company. The Company’s segments include Personal Care, which primarily includes sales of skin care and hair care products, deodorants and oral care products; Foods, which primarily includes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads; Home Care, which primarily includes sales of home care products, such as powders, liquids and capsules, soap bars and a range of cleaning products, and Refreshment, which primarily includes sales of ice cream and tea-based beverages. The Company’s geographical segments include Asia/AMET/RUB, The Americas and Europe. Its brands include Axe, Dirt is Good (Omo), Dove, Family Goodness (Rama), Heartbrand (Wall’s), Hellmann’s, Knorr, Lipton, Lux, Magnum, Rexona, Sunsilk and Surf. The Company operates in more than 100 countries, selling its products in more than 190 countries. The Company operates approximately 310 factories in over 70 countries.

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