Reviewing United-Guardian (UG) and Avon Products (AVP)

United-Guardian (NASDAQ:UG) and Avon Products (NYSE:AVP) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings for United-Guardian and Avon Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United-Guardian 0 0 0 0 N/A
Avon Products 1 4 2 0 2.14

Avon Products has a consensus target price of $2.68, suggesting a potential upside of 42.48%. Given Avon Products’ higher probable upside, analysts clearly believe Avon Products is more favorable than United-Guardian.

Valuation and Earnings

This table compares United-Guardian and Avon Products’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United-Guardian $12.97 million 6.08 $3.84 million N/A N/A
Avon Products $5.72 billion 0.15 $22.00 million $0.06 31.33

Avon Products has higher revenue and earnings than United-Guardian.

Dividends

United-Guardian pays an annual dividend of $1.00 per share and has a dividend yield of 5.8%. Avon Products does not pay a dividend.

Risk & Volatility

United-Guardian has a beta of -0.06, indicating that its share price is 106% less volatile than the S&P 500. Comparatively, Avon Products has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

24.1% of United-Guardian shares are held by institutional investors. Comparatively, 77.0% of Avon Products shares are held by institutional investors. 30.8% of United-Guardian shares are held by insiders. Comparatively, 0.7% of Avon Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares United-Guardian and Avon Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United-Guardian 32.82% 36.25% 31.85%
Avon Products 0.83% -9.10% 2.08%

Summary

Avon Products beats United-Guardian on 7 of the 13 factors compared between the two stocks.

United-Guardian Company Profile

United-Guardian, Inc. manufactures and markets cosmetic ingredients, personal care products, pharmaceuticals, medical lubricants, healthcare products, and specialty industrial products in the United States and internationally. It offers personal care products, including LUBRAJEL line of water-based moisturizing and lubricating gel formulations; LUBRAJEL II XD; ORCHID COMPLEX, an oil-soluble base for skin creams, lotions, cleansers, and other cosmetics; LUBRASLIDE and B-122 powdered lubricants for use in the manufacture of pressed powders, eyeliners, and rouges; KLENSOFT, a surfactant for use in shampoos, shower gels, makeup removers, and other cosmetic formulations; and LUBRASIL, a special form of LUBRAJEL in which silicone oil is incorporated into a LUBRAJEL base. The company's medical products comprise LUBRAJEL RR and RC lubricant gels for urinary catheters; LUBRAJEL MG to lubricate urinary catheters, pre-lubricated enema tips, and other medical devices; LUBRAJEL LC, LUBRAJEL FA, and LUBRAJEL BA, which are LUBRAJEL formulations for oral use; LUBRAJEL FLUID to lubricate water-soluble products; and LUBRAJEL TF, a medical lubricant. Its pharmaceutical products consist of RENACIDIN, a prescription drug to prevent and dissolve calcifications in urethral catheters and the urinary bladder; and CLORPACTIN WCS-90, an antimicrobial product to treat infections in the urinary bladder. The company's industrial products include DESELEX liquid, a sequestering and chelating agent for use in the manufacture of detergents; and THOROCLENS, a chlorine-based cleanser. United-Guardian, Inc. also conducts research and product development, primarily related to the development of cosmetic and personal care products. The company markets its products through marketing partners and distributors, advertising in medical and trade journals, mailings to physicians and to the trade, and exhibitions at medical meetings. United-Guardian, Inc. was founded in 1942 and is based in Hauppauge, New York.

Avon Products Company Profile

Avon Products, Inc. manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products, and nutritional products. It sells its products through direct selling by representatives, who are independent contractors. The company was founded in 1886 and is headquartered in London, the United Kingdom.

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