The Procter & Gamble Company (PG), Unilever N.V. (ADR) (UN): Clash of the Consumer Goods Titans

Page 1 of 2

The Procter & Gamble Company (NYSE:PG)One of legendary investor Peter Lynch’s favorite bits of advice for individual investors trying to figure out the stock market on their own was to buy what you know. If you’ve tried a company’s product and enjoyed it, that could be a sign to investigate the stock.

The following three companies are all giants in the consumer goods industry, and you’ve probably encountered at least one product from each of them in the past week. Even if 10-K reports aren’t your thing, just by being an American consumer you could know an awful lot about these three companies.

English candles meet Irish soap

What do you get when a brother-in-law duo of an English candle-maker and an Irish soap-maker combine forces in Cincinnati? A $218 billion dollar consumer goods giant named The Procter & Gamble Company (NYSE:PG). That’s what. The company is organized into five reportable segments.

Fabric care and home care is the largest in terms of net sales and earnings (32% and 26%, respectively). Blockbuster brands from this segment include Febreeze, Tide, Downy and Duracell.

The Procter & Gamble Company (NYSE:PG)’s second largest segment is beauty. Billion dollar brands from this segment include Head and Shoulders, Pantene, and Olay.

Up next is baby care and family care. Toilet paper and diapers is what this segment is all about.

Fourth is the company’s health care segment.

Last, and also least in terms of revenues and profits, is grooming. This segment almost exclusively deals with hair removal. Some names we all know from this segment include Gillette and Braun.

One thing investors are sure to love about this company is its incredible dividend record, one of the best in the entire universe of stocks. The Procter & Gamble Company (NYSE:PG) has been paying a dividend for 122 consecutive years. It has increased its dividend for 56 consecutive years at a annual growth rate of approximately 9.5%.

Over the past six months, insider sales outnumber insider transactions by a ratio of 10 to 1. While some may see this as a troubling sign, I attribute it more to the fact that the stock market as a whole is overvalued right now. (An excellent discussion expounding on that can be found here.) As the stock market becomes more overvalued, big names like The Procter & Gamble Company (NYSE:PG) are sure to follow suit.

Don’t underestimate the Dutch

If you do, you are depriving yourself of countless opportunities, included among them being an investment in Unilever N.V. (ADR) (NYSE:UN).

Unilever N.V. (ADR) (NYSE:UN) manages its brands in four categories. They are:

Personal Care – This segment contains Unilever N.V. (ADR) (NYSE:UN)’s hygiene products. Some names you might know from this segment include Dove, Suave, and Axe.

Refreshments - If you love ice cream, then you’ll probably love Unilever N.V. (ADR) (NYSE:UN). It owns Ben and Jerry’s, Breyers, Klondike, and the Popsicle brand.

Foods – Unilever N.V. (ADR) (NYSE:UN) owns the most popular condiment in the United States of America, Hellman’s mayonnaise. This segment also sells Ragu and Bertolli brand pasta sauces.

Home Care – This segment contains Unilever N.V. (ADR) (NYSE:UN)’s household cleaning products.

The crisis in Europe has led the the Euro becoming noticeably weaker against the dollar. The 2008 euro-to-dollar exchange rate was roughly 1.4, and in 2012 that number was approximately 1.24.

For Unilever, a company that proportionately generates most of its revenues in euros, this translates into a relative decline of revenues and profits if denominated in dollar terms.

Can’t forget this Swiss powerhouse

I saved the biggest company for last. With a market cap of $236.9 billion dollars, Nestle SA (VTX:NESN) is just slightly bigger than The Procter & Gamble Company (NYSE:PG).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!