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 Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

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!