Avon Products (NYSE: AVP) and Unilever NV (NYSE:UN) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Risk and Volatility
Avon Products has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500. Comparatively, Unilever NV has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
Institutional & Insider Ownership
84.2% of Avon Products shares are held by institutional investors. Comparatively, 9.0% of Unilever NV shares are held by institutional investors. 1.3% of Avon Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Avon Products and Unilever NV’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Avon Products||$5.71 billion||0.20||$385.60 million||($0.19)||-13.37|
|Unilever NV||$64.79 billion||2.62||$11.58 billion||N/A||N/A|
Unilever NV has higher revenue and earnings than Avon Products.
This is a summary of current ratings and recommmendations for Avon Products and Unilever NV, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avon Products presently has a consensus target price of $3.62, suggesting a potential upside of 42.39%. Given Avon Products’ higher possible upside, equities research analysts plainly believe Avon Products is more favorable than Unilever NV.
This table compares Avon Products and Unilever NV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Unilever NV pays an annual dividend of $1.41 per share and has a dividend yield of 2.3%. Avon Products does not pay a dividend.
Unilever NV beats Avon Products on 9 of the 13 factors compared between the two stocks.
About Avon Products
Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s segments include Europe, Middle East & Africa; South Latin America; North Latin America, and Asia Pacific. Its product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s products include Anew Ultimate Supreme Advanced Performance Creme, Anew Vitale Visible Perfection Blurring Treatment, Big & Multiplied Volume Mascara, Avon True Perfectly Matte Lipstick, Avon Life for Him and for Her Fragrances, Far Away Infinity Fragrance and Avon Nutra Effects body collection with Active Seed Complex. The Company primarily sells its products to the consumer through the direct-selling channel.
About Unilever NV
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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