Procter & Gamble (NYSE:PG) vs. Henkel AG & Co. (OTCMKTS:HENKY) Financial Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.95%	32.69%	13.49%
Henkel AG & Co.	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Procter & Gamble and Henkel AG & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	7	10	1	2.67
Henkel AG & Co.	0	1	1	2	3.25

Procter & Gamble presently has a consensus price target of $175.12, indicating a potential upside of 10.82%. Given Procter & Gamble’s higher probable upside, analysts plainly believe Procter & Gamble is more favorable than Henkel AG & Co..

Dividends

Procter & Gamble pays an annual dividend of $4.22 per share and has a dividend yield of 2.7%. Henkel AG & Co. pays an annual dividend of $0.39 per share and has a dividend yield of 2.0%. Procter & Gamble pays out 64.8% of its earnings in the form of a dividend. Procter & Gamble has raised its dividend for 70 consecutive years. Procter & Gamble is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Procter & Gamble has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Henkel AG & Co. has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Institutional & Insider Ownership

65.8% of Procter & Gamble shares are held by institutional investors. Comparatively, 0.0% of Henkel AG & Co. shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Procter & Gamble and Henkel AG & Co.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	4.39	$15.97 billion	$6.51	24.27
Henkel AG & Co.	$23.36 billion	1.41	$2.17 billion	N/A	N/A

Procter & Gamble has higher revenue and earnings than Henkel AG & Co..

Summary

Procter & Gamble beats Henkel AG & Co. on 12 of the 16 factors compared between the two stocks.

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.

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.