Procter & Gamble (NYSE:PG – Get Free Report) and Yatsen (NYSE:YSG – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.
Analyst Ratings
This is a summary of current recommendations and price targets for Procter & Gamble and Yatsen, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Procter & Gamble | 0 | 9 | 11 | 0 | 2.55 |
| Yatsen | 1 | 0 | 0 | 0 | 1.00 |
Procter & Gamble currently has a consensus target price of $161.06, indicating a potential upside of 11.46%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, analysts plainly believe Procter & Gamble is more favorable than Yatsen.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Procter & Gamble | $84.28 billion | 3.99 | $15.97 billion | $6.84 | 21.13 |
| Yatsen | $614.62 million | 0.40 | -$11.56 million | ($0.13) | -19.96 |
Procter & Gamble has higher revenue and earnings than Yatsen. Yatsen is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Procter & Gamble and Yatsen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Procter & Gamble | 19.16% | 32.00% | 13.27% |
| Yatsen | -1.87% | -2.65% | -2.04% |
Institutional & Insider Ownership
65.8% of Procter & Gamble shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by company insiders. Comparatively, 29.0% of Yatsen shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Procter & Gamble has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -1.65, meaning that its stock price is 265% less volatile than the S&P 500.
Summary
Procter & Gamble beats Yatsen on 13 of the 14 factors compared between the two stocks.
About Procter & Gamble
Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.
About Yatsen
Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
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