Procter & Gamble vs Unilever Which Is More Attractive?

Procter & Gamble (P&G) and Unilever are two of the world's largest consumer goods companies, known for their wide range of popular household and personal care products. Both companies have a long history of success in the market, making them attractive options for investors. P&G has a strong presence in the United States, while Unilever is more globally diversified. Investors may consider factors such as brand recognition, revenue growth, and market trends when comparing these two companies' stocks.

Procter & Gamble or Unilever?

When comparing Procter & Gamble and Unilever, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Procter & Gamble and Unilever.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Procter & Gamble has a dividend yield of 2.98%, while Unilever has a dividend yield of 4.61%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Procter & Gamble reports a 5-year dividend growth of 5.63% year and a payout ratio of 66.12%. On the other hand, Unilever reports a 5-year dividend growth of 0.22% year and a payout ratio of 64.35%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Procter & Gamble P/E ratio at 27.41 and Unilever's P/E ratio at 20.60. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Procter & Gamble P/B ratio is 7.57 while Unilever's P/B ratio is 6.74.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Procter & Gamble has seen a 5-year revenue growth of 0.31%, while Unilever's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Procter & Gamble's ROE at 28.53% and Unilever's ROE at 34.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $165.72 for Procter & Gamble and $56.97 for Unilever. Over the past year, Procter & Gamble's prices ranged from $142.50 to $177.94, with a yearly change of 24.87%. Unilever's prices fluctuated between $46.46 and $65.87, with a yearly change of 41.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.