Unilever (UN) and Church & Dwight (CHD) Critical Comparison

Unilever (NYSE: UN) and Church & Dwight (NYSE:CHD) are both large-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

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8.3% of Unilever shares are held by institutional investors. Comparatively, 83.6% of Church & Dwight shares are held by institutional investors. 2.0% of Church & Dwight shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Unilever and Church & Dwight, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unilever 1 3 3 0 2.29
Church & Dwight 4 6 6 0 2.13

Church & Dwight has a consensus target price of $51.38, suggesting a potential upside of 5.47%. Given Church & Dwight’s higher probable upside, analysts clearly believe Church & Dwight is more favorable than Unilever.

Profitability

This table compares Unilever and Church & Dwight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unilever N/A N/A N/A
Church & Dwight 19.69% 24.95% 9.40%

Volatility and Risk

Unilever has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Church & Dwight has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Dividends

Unilever pays an annual dividend of $1.51 per share and has a dividend yield of 2.7%. Church & Dwight pays an annual dividend of $0.87 per share and has a dividend yield of 1.8%. Unilever pays out 59.7% of its earnings in the form of a dividend. Church & Dwight pays out 44.8% 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. Church & Dwight has increased its dividend for 12 consecutive years.

Earnings & Valuation

This table compares Unilever and Church & Dwight’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unilever $60.68 billion 1.58 $6.84 billion $2.53 22.06
Church & Dwight $3.78 billion 3.15 $743.40 million $1.94 25.11

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

Summary

Church & Dwight beats Unilever on 11 of the 17 factors compared between the two stocks.

About Unilever

Unilever N.V. operates in the fast-moving consumer goods industry worldwide. The company operates through Personal Care, Home Care, Foods, and Refreshment segments. The Personal Care segment offers skincare and haircare products, deodorants, and oral care products. This segment markets its products under the Axe, Dove, Lux, Rexona, Sunsilk, TRESemmé, Signal, Lifebuoy, Vaseline, Dermalogica, Murad, Dollar Shave Club, Zest & Camay, and Seventh Generation brands. The Home Care segment provides home care products, such as powders, liquids and capsules, soap bars, and various cleaning products under the Dirt is Good, Surf, Comfort, Domestos, Sunlight, Cif, Pureit, Blueair, and Radiant brands. The Foods segment provides soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines, and spreads under the Knorr, Hellmann's, Bango, Maizena, Robertsons, and Kissan brands. The Refreshment segment offers ice cream and tea-based beverages under the Heartbrand, Magnum, Lipton, Brooke Bond, Ben & Jerry's, Pure Leaf, Taj Mahal, Grom, Talenti, and Breyers brands. The company was formerly known as Margarine Unie N.V. and changed its name to Unilever N.V. in 1929. Unilever N.V. was founded in 1927 and is headquartered in Rotterdam, the Netherlands. Unilever N.V. is a subsidiary of The Unilever Group.

About Church & Dwight

Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products. The company operates through three segments: Consumer Domestic, Consumer International, and the Specialty Products Division. It offers baking soda, cat litter, carpet deodorization, and laundry detergent products under the ARM & HAMMER brand; condoms, lubricants, and vibrators TROJAN brand; stain removers, cleaning solutions, laundry detergents, dishwashing detergents, and bleach alternatives under the OXICLEAN brand; battery-operated and manual toothbrushes under the SPINBRUSH brand; home pregnancy and ovulation test kits under the FIRST RESPONSE brand; depilatories under the NAIR brand; oral analgesic products under the ORAJEL brand; laundry detergents under the XTRA brand; gummy dietary supplements under the L'IL CRITTERS and VITAFUSION brands; dry shampoos under the BATISTE brand; and water flossers and replacement showerheads under the WATERPIK brand. The company also provides specialty products, including animal productivity products, such as MEGALAC rumen bypass fat, a supplement, which enables cows to maintain energy levels during the period of high milk production; BIO-CHLOR and FERMENTEN, which are designed to help reduce health issues associated with calving, as well as provides needed protein; and CELMANAX refined functional carbohydrate, a yeast based prebiotic. In addition, it offers sodium bicarbonate for use in industrial markets; and cleaning and deodorizing products for use in office buildings, hotels, restaurants, and other facilities. The company sells its consumer products through supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and pet stores, and other specialty stores, as well as through Websites; and specialty products to industrial customers and livestock producers through distributors. The company was founded in 1846 and is headquartered in Ewing, New Jersey.

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