Critical Comparison: Kimberly-Clark de México, S. A. B. de C. V. (OTCMKTS:KCDMF) and Unicharm (OTCMKTS:UNICY)

Unicharm (OTCMKTS:UNICY) and Kimberly-Clark de México, S. A. B. de C. V. (OTCMKTS:KCDMF) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Profitability

This table compares Unicharm and Kimberly-Clark de México, S. A. B. de C. V.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unicharm	9.08%	11.13%	7.69%
Kimberly-Clark de México, S. A. B. de C. V.	N/A	N/A	N/A

Institutional and Insider Ownership

17.3% of Kimberly-Clark de México, S. A. B. de C. V. shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Unicharm and Kimberly-Clark de México, S. A. B. de C. V.’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unicharm	$6.72 billion	N/A	$610.98 million	$0.20	28.65
Kimberly-Clark de México, S. A. B. de C. V.	N/A	N/A	N/A	$1.20	1.71

Unicharm has higher revenue and earnings than Kimberly-Clark de México, S. A. B. de C. V.. Kimberly-Clark de México, S. A. B. de C. V. is trading at a lower price-to-earnings ratio than Unicharm, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Unicharm and Kimberly-Clark de México, S. A. B. de C. V., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unicharm	0	0	0	0	N/A
Kimberly-Clark de México, S. A. B. de C. V.	0	0	0	0	N/A

Dividends

Unicharm pays an annual dividend of $0.04 per share and has a dividend yield of 0.7%. Kimberly-Clark de México, S. A. B. de C. V. pays an annual dividend of $1.38 per share and has a dividend yield of 67.3%. Unicharm pays out 20.0% of its earnings in the form of a dividend. Kimberly-Clark de México, S. A. B. de C. V. pays out 115.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Unicharm beats Kimberly-Clark de México, S. A. B. de C. V. on 6 of the 9 factors compared between the two stocks.

About Unicharm

Unicharm Corporation engages in the manufacturing and sale of wellness, feminine, baby and children, kirei, and pet care products in Japan and internationally. The company's baby and child care products, including disposable diapers and wipes under the Moony, MamyPoko, Oyasumiman, and Torepanman brands; feminine care products comprise napkins, tampons, panty liners, sanitary short, panty liners, and other feminine care products under the Sofy, Center-In, and Unicharm brand names; and wellness care products include napkin-type incontinence pads, pants-type diapers, tape-type diapers, pants-type specialized urine pads, and tape-type specialized urine pads under the Lifree and Charmnap brand. It also provides masks under the Unicharm brand; home care products, including cleaning sheets under the Wave brand name; cosmetic cotton and wet wipes under the Silcot brand; and paper towels under the Cook Up brand name. In addition, the company offers pet care products that include pet foods, excrement cleanup sheets, system toilets, and disposable diapers under the Grand Deli, Best Balance, Physicalife Dog, Silver Plate, Aiken Genki, Manner Wear, Deo Sheet, Silver Spoon, AllWell, Physicalife Cat, Deo Toilet, Deo Sand, Deo Clean, and Neko Genki brands; and deodorizing beads. Further, it is involved in the manufacture and sale of industrial materials related products, etc., as well as food-packaging materials. Unicharm Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

About Kimberly-Clark de México, S. A. B. de C. V.

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.