Kenvue (NYSE:KVUE – Get Free Report) and Procter & Gamble (NYSE:PG – Get Free Report) are both large-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.
Profitability
This table compares Kenvue and Procter & Gamble’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kenvue | 10.76% | 21.22% | 8.37% |
| Procter & Gamble | 18.44% | 31.36% | 13.09% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Kenvue and Procter & Gamble, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kenvue | 0 | 12 | 3 | 0 | 2.20 |
| Procter & Gamble | 0 | 11 | 13 | 0 | 2.54 |
Earnings & Valuation
This table compares Kenvue and Procter & Gamble”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kenvue | $15.12 billion | 2.27 | $1.47 billion | $0.87 | 20.58 |
| Procter & Gamble | $87.03 billion | 3.91 | $16.05 billion | $6.62 | 22.15 |
Procter & Gamble has higher revenue and earnings than Kenvue. Kenvue is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.
Dividends
Kenvue pays an annual dividend of $0.84 per share and has a dividend yield of 4.7%. Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 3.0%. Kenvue pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Procter & Gamble pays out 65.7% of its earnings in the form of a dividend. Kenvue has increased its dividend for 1 consecutive years and Procter & Gamble has increased its dividend for 70 consecutive years.
Insider and Institutional Ownership
97.6% of Kenvue shares are held by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are held by institutional investors. 1.6% of Kenvue shares are held by company insiders. Comparatively, 0.2% of Procter & Gamble shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Kenvue has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Summary
Procter & Gamble beats Kenvue on 13 of the 17 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 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.
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