Kenvue (NYSE:KVUE) & Nestle (OTCMKTS:NSRGY) Financial Analysis

Kenvue (NYSE:KVUE) and Nestle (OTCMKTS:NSRGY) are both large-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Volatility and Risk

Kenvue has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Nestle has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kenvue and Nestle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	2.15	$1.03 billion	$0.75	23.07
Nestle	$103.78 billion	2.47	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Kenvue.

Analyst Ratings

This is a summary of recent ratings for Kenvue and Nestle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	1	12	5	1	2.32
Nestle	1	3	1	1	2.33

Kenvue presently has a consensus price target of $20.23, suggesting a potential upside of 16.92%. Nestle has a consensus price target of $91.00, suggesting a potential downside of 8.62%. Given Kenvue’s higher possible upside, analysts plainly believe Kenvue is more favorable than Nestle.

Profitability

This table compares Kenvue and Nestle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.55%	20.02%	7.74%
Nestle	N/A	N/A	N/A

Institutional & Insider Ownership

97.6% of Kenvue shares are owned by institutional investors. Comparatively, 0.6% of Nestle shares are owned by institutional investors. 1.7% of Kenvue shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Kenvue pays an annual dividend of $0.83 per share and has a dividend yield of 4.8%. Nestle pays an annual dividend of $2.37 per share and has a dividend yield of 2.4%. Kenvue pays out 110.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenvue has increased its dividend for 1 consecutive years. Kenvue is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Kenvue beats Nestle on 10 of the 15 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.