Procter & Gamble (NYSE:PG – Get Free Report) and Grocery Outlet (NASDAQ:GO – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Profitability
This table compares Procter & Gamble and Grocery Outlet’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% |
| Grocery Outlet | -8.08% | 5.69% | 1.86% |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Procter & Gamble and Grocery Outlet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Procter & Gamble | 0 | 9 | 11 | 0 | 2.55 |
| Grocery Outlet | 2 | 11 | 0 | 0 | 1.85 |
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, Grocery Outlet has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
Institutional and Insider Ownership
65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by company insiders. Comparatively, 4.5% of Grocery Outlet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Procter & Gamble and Grocery Outlet”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Procter & Gamble | $84.28 billion | 4.08 | $15.97 billion | $6.84 | 21.57 |
| Grocery Outlet | $4.69 billion | 0.17 | -$224.91 million | ($3.88) | -2.12 |
Procter & Gamble has higher revenue and earnings than Grocery Outlet. Grocery Outlet is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.
Summary
Procter & Gamble beats Grocery Outlet on 10 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 Grocery Outlet
Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.
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