Unilever N.V. (ADR) (UN) – Consumer Goods: Information You Must Know

Unilever N.V. (ADR) (NYSE:UN) trades at 2014 16.5 times its price-to-earnings ratio and pays a 4% cash dividend yield. I believe that you can find better alternatives for the same price in the CGC space.

Bottom line

As I mentioned in the beginning, market share and pricing drive the whole CGC industry. Some companies such as L’Oreal are performing extremely well and deserve a price premium while others, like Nestlé, are successfully working on solutions to their problems to keep up with the market. On the other hand, some giants like Unilever N.V. (ADR) (NYSE:UN) need to rework their strategies since they seem to be losing in attempts to solve their market share troubles. If you are going to invest in CGC companies, first look at market share and pricing performance. Ultimately, this is the only way you have to asses management’s performance.

The article Consumer Goods: Information You Must Know originally appeared on Fool.com and is written by Federico Zaldua.

Federico Zaldua has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Federico is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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