Kenvue (NYSE:KVUE – Get Free Report) and Clorox (NYSE:CLX – Get Free Report) are both large-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Profitability
This table compares Kenvue and Clorox’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Kenvue | 9.37% | 20.06% | 7.78% |
Clorox | 11.40% | 377.86% | 17.35% |
Dividends
Kenvue pays an annual dividend of $0.83 per share and has a dividend yield of 4.5%. Clorox pays an annual dividend of $4.96 per share and has a dividend yield of 3.9%. Kenvue pays out 112.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clorox pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenvue has increased its dividend for 1 consecutive years and Clorox has increased its dividend for 47 consecutive years.
Insider and Institutional Ownership
Valuation & Earnings
This table compares Kenvue and Clorox”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Kenvue | $15.46 billion | 2.31 | $1.03 billion | $0.74 | 25.18 |
Clorox | $7.10 billion | 2.19 | $810.00 million | $6.52 | 19.49 |
Kenvue has higher revenue and earnings than Clorox. Clorox is trading at a lower price-to-earnings ratio than Kenvue, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kenvue has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Clorox has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Kenvue and Clorox, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Kenvue | 1 | 7 | 5 | 0 | 2.31 |
Clorox | 2 | 8 | 1 | 0 | 1.91 |
Kenvue presently has a consensus target price of $24.38, suggesting a potential upside of 30.80%. Clorox has a consensus target price of $142.64, suggesting a potential upside of 12.24%. Given Kenvue’s stronger consensus rating and higher probable upside, research analysts plainly believe Kenvue is more favorable than Clorox.
Summary
Kenvue beats Clorox on 10 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 Clorox
The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. It sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The Clorox Company was founded in 1913 and is headquartered in Oakland, California.
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