Head to Head Contrast: Procter & Gamble (NYSE:PG) vs. WD-40 (NASDAQ:WDFC)

Procter & Gamble (NYSE:PG) and WD-40 (NASDAQ:WDFC) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Procter & Gamble and WD-40, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	10	11	0	2.52
WD-40	0	1	2	0	2.67

Procter & Gamble currently has a consensus price target of $160.78, indicating a potential upside of 6.58%. WD-40 has a consensus price target of $270.00, indicating a potential upside of 18.83%. Given WD-40’s stronger consensus rating and higher possible upside, analysts plainly believe WD-40 is more favorable than Procter & Gamble.

Profitability

This table compares Procter & Gamble and WD-40’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%
WD-40	12.57%	30.23%	17.15%

Dividends

Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 2.9%. WD-40 pays an annual dividend of $4.08 per share and has a dividend yield of 1.8%. Procter & Gamble pays out 63.6% of its earnings in the form of a dividend. WD-40 pays out 69.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Procter & Gamble has increased its dividend for 70 consecutive years and WD-40 has increased its dividend for 17 consecutive years. Procter & Gamble is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Procter & Gamble and WD-40″s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	4.17	$15.97 billion	$6.84	22.05
WD-40	$619.98 million	4.93	$90.99 million	$5.88	38.64

Procter & Gamble has higher revenue and earnings than WD-40. Procter & Gamble is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Procter & Gamble has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, WD-40 has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Insider and Institutional Ownership

65.8% of Procter & Gamble shares are held by institutional investors. Comparatively, 91.5% of WD-40 shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by insiders. Comparatively, 0.8% of WD-40 shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Procter & Gamble beats WD-40 on 10 of the 17 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 WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.