Financial Contrast: Henkel AG & Co. (OTCMKTS:HENKY) and Nestle (OTCMKTS:NSRGY)

Henkel AG & Co. (OTCMKTS:HENKY) and Nestle (OTCMKTS:NSRGY) are both large-cap consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Henkel AG & Co. has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Nestle has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Henkel AG & Co. shares are held by institutional investors. Comparatively, 0.6% of Nestle shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Henkel AG & Co. and Nestle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henkel AG & Co.	N/A	N/A	N/A
Nestle	N/A	N/A	N/A

Dividends

Henkel AG & Co. pays an annual dividend of $0.39 per share and has a dividend yield of 2.1%. Nestle pays an annual dividend of $2.37 per share and has a dividend yield of 2.5%.

Analyst Ratings

This is a summary of current ratings and recommmendations for Henkel AG & Co. and Nestle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henkel AG & Co.	0	0	1	1	3.50
Nestle	2	7	0	1	2.00

Nestle has a consensus price target of $91.00, indicating a potential downside of 5.58%. Given Nestle’s higher possible upside, analysts plainly believe Nestle is more favorable than Henkel AG & Co..

Valuation and Earnings

This table compares Henkel AG & Co. and Nestle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henkel AG & Co.	$23.36 billion	1.31	$2.17 billion	N/A	N/A
Nestle	$103.78 billion	2.39	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Henkel AG & Co..

Summary

Nestle beats Henkel AG & Co. on 6 of the 9 factors compared between the two stocks.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.