Coty (NYSE:COTY – Get Free Report) and Yatsen (NYSE:YSG – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Institutional and Insider Ownership
42.4% of Coty shares are held by institutional investors. 0.5% of Coty 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 company will outperform the market over the long term.
Risk and Volatility
Coty has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -1.58, meaning that its stock price is 258% less volatile than the S&P 500.
Profitability
This table compares Coty and Yatsen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Coty | -9.74% | 7.11% | 2.28% |
| Yatsen | -4.63% | -7.26% | -5.42% |
Earnings & Valuation
This table compares Coty and Yatsen”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Coty | $5.81 billion | 0.62 | -$604.80 million | ($0.65) | -6.25 |
| Yatsen | $614.62 million | 0.30 | -$11.56 million | ($0.32) | -6.06 |
Yatsen has lower revenue, but higher earnings than Coty. Coty is trading at a lower price-to-earnings ratio than Yatsen, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Coty and Yatsen, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Coty | 2 | 10 | 1 | 0 | 1.92 |
| Yatsen | 1 | 0 | 0 | 0 | 1.00 |
Coty currently has a consensus price target of $3.35, indicating a potential downside of 17.70%. Given Coty’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Coty is more favorable than Yatsen.
Summary
Coty beats Yatsen on 9 of the 13 factors compared between the two stocks.
About Coty
Coty is a global beauty company that develops, manufactures, markets and distributes fragrances, cosmetics, skin care and body-care products. Its portfolio spans prestige and consumer beauty, with products sold in markets around the world. The company’s brands include CoverGirl, Rimmel London, Max Factor and Sally Hansen. Coty also produces fragrances and beauty products under license for a range of fashion and lifestyle brands. Founded in Paris in 1904 by perfumer François Coty, the company has grown from a fragrance business into a broad-based beauty group.
About Yatsen
Yatsen is a China-based beauty company that develops, markets and sells cosmetics and skincare products. Its portfolio includes makeup, facial care, body care and other personal-care products, with sales conducted through e-commerce platforms, direct-to-consumer channels and offline retail outlets. The company’s best-known brand is Perfect Diary, which offers color cosmetics and related beauty products. Yatsen has also developed and operated brands including Little Ondine, Abby’s Choice and Pink Bear, while expanding its skincare portfolio through brands such as Galénic, DR.WU and Eve Lom.
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