Shiseido (OTCMKTS: SSDOY) and Avon Products (NYSE:AVP) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
0.1% of Shiseido shares are owned by institutional investors. Comparatively, 83.6% of Avon Products shares are owned by institutional investors. 1.3% of Avon Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Shiseido and Avon Products’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shiseido||$8.97 billion||2.68||$202.92 million||$0.49||122.41|
|Avon Products||$5.72 billion||0.22||$22.00 million||($0.04)||-73.00|
Shiseido has higher revenue and earnings than Avon Products. Avon Products is trading at a lower price-to-earnings ratio than Shiseido, indicating that it is currently the more affordable of the two stocks.
This table compares Shiseido and Avon Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Shiseido has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Avon Products has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.
This is a summary of recent ratings for Shiseido and Avon Products, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Avon Products has a consensus target price of $2.42, suggesting a potential downside of 17.24%. Given Avon Products’ higher probable upside, analysts plainly believe Avon Products is more favorable than Shiseido.
Shiseido beats Avon Products on 8 of the 13 factors compared between the two stocks.
Shiseido Company Profile
Shiseido Company, Limited is engaged in the business of the production and sale of cosmetics. The Company operates through two segments: Japan Business and Global Business. The Company’s Japan Business segment includes the Japan business, which includes the production and sale of cosmetics, cosmetics accessories and toiletries, and the healthcare business, which includes the production and sale of health and beauty foods, and over-the-counter drugs. The Japan Business segment is also engaged in the production and sale of non-Shiseido-brand products and mail-order products, and other businesses. The Company’s Global Business segment covers the overseas cosmetics business, which includes the production and sale of cosmetics, cosmetics accessories and toiletries, and the domestic and overseas professional business, which includes the production and sale of beauty salon products and other businesses. In addition, the Company is involved in the restaurant business.
Avon Products Company Profile
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.
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