Head to Head Analysis: Church & Dwight (NYSE:CHD) versus Grocery Outlet (NASDAQ:GO)

Church & Dwight (NYSE:CHD) and Grocery Outlet (NASDAQ:GO) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares Church & Dwight and Grocery Outlet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Church & Dwight	$6.11 billion	3.53	$585.30 million	$2.12	41.78
Grocery Outlet	$4.37 billion	0.34	$39.47 million	$0.07	219.43

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Church & Dwight and Grocery Outlet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Church & Dwight	5	7	7	0	2.11
Grocery Outlet	2	6	4	1	2.31

Church & Dwight currently has a consensus price target of $100.88, suggesting a potential upside of 13.91%. Grocery Outlet has a consensus price target of $16.27, suggesting a potential upside of 5.94%. Given Church & Dwight’s higher possible upside, analysts plainly believe Church & Dwight is more favorable than Grocery Outlet.

Risk and Volatility

Church & Dwight has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Grocery Outlet has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Church & Dwight	8.66%	19.27%	9.55%
Grocery Outlet	0.18%	6.34%	2.35%

Insider & Institutional Ownership

86.6% of Church & Dwight shares are held by institutional investors. Comparatively, 99.9% of Grocery Outlet shares are held by institutional investors. 2.0% of Church & Dwight shares are held by company insiders. Comparatively, 4.5% of Grocery Outlet shares are held by company 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.

Summary

Church & Dwight beats Grocery Outlet on 10 of the 15 factors compared between the two stocks.

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.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products. The company was founded in 1946 and is headquartered in Emeryville, California.