Yatsen (NYSE:YSG) and Church & Dwight (NYSE:CHD) Critical Comparison

Yatsen (NYSE:YSG) and Church & Dwight (NYSE:CHD) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Institutional and Insider Ownership

86.6% of Church & Dwight shares are held by institutional investors. 29.0% of Yatsen shares are held by insiders. Comparatively, 2.0% of Church & Dwight shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Yatsen and Church & Dwight”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yatsen	$464.90 million	1.89	-$97.02 million	($0.84)	-11.33
Church & Dwight	$6.11 billion	3.79	$585.30 million	$2.12	44.78

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

Analyst Ratings

This is a summary of recent ratings and price targets for Yatsen and Church & Dwight, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yatsen	0	0	0	0	0.00
Church & Dwight	4	6	7	0	2.18

Church & Dwight has a consensus target price of $103.9375, indicating a potential upside of 9.48%. Given Church & Dwight’s stronger consensus rating and higher probable upside, analysts clearly believe Church & Dwight is more favorable than Yatsen.

Profitability

This table compares Yatsen and Church & Dwight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yatsen	-17.03%	-17.36%	-13.86%
Church & Dwight	8.66%	19.27%	9.55%

Volatility & Risk

Yatsen has a beta of -2.11, meaning that its share price is 311% less volatile than the S&P 500. Comparatively, Church & Dwight has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Summary

Church & Dwight beats Yatsen on 13 of the 14 factors compared between the two stocks.

About Yatsen

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.

About Church & Dwight

Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products Division (SPD), and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment is involved in the personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom. The SPD segment consists of sales to businesses and participates in three product areas namely, animal nutrition, specialty chemicals, and commercial and professional. The Corporate segment includes equity in earnings of affiliates. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.