Synergy CHC (NASDAQ:SNYR) versus Colgate-Palmolive (NYSE:CL) Critical Review

Colgate-Palmolive (NYSE:CL) and Synergy CHC (NASDAQ:SNYR) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Colgate-Palmolive and Synergy CHC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	0	6	11	0	2.65
Synergy CHC	0	1	2	0	2.67

Colgate-Palmolive currently has a consensus price target of $94.75, indicating a potential upside of 12.46%. Synergy CHC has a consensus price target of $6.00, indicating a potential upside of 395.91%. Given Synergy CHC’s stronger consensus rating and higher possible upside, analysts clearly believe Synergy CHC is more favorable than Colgate-Palmolive.

Insider and Institutional Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. 0.3% of Colgate-Palmolive shares are owned by insiders. Comparatively, 56.6% of Synergy CHC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Colgate-Palmolive has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Synergy CHC has a beta of 3.63, suggesting that its share price is 263% more volatile than the S&P 500.

Earnings and Valuation

This table compares Colgate-Palmolive and Synergy CHC”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$20.38 billion	3.32	$2.13 billion	$2.62	32.16
Synergy CHC	$34.83 million	0.39	$2.12 million	$0.29	4.17

Colgate-Palmolive has higher revenue and earnings than Synergy CHC. Synergy CHC is trading at a lower price-to-earnings ratio than Colgate-Palmolive, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Colgate-Palmolive and Synergy CHC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	10.45%	353.72%	17.63%
Synergy CHC	7.77%	-19.51%	14.25%

Summary

Colgate-Palmolive beats Synergy CHC on 10 of the 14 factors compared between the two stocks.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

About Synergy CHC

Synergy CHC Corp. engages in the marketing and distribution of branded health and wellness products. The company was founded on December 29, 2010 and is headquartered in Westbrook, ME.