WD-40 (NASDAQ:WDFC – Get Free Report) and Yatsen (NYSE:YSG – Get Free Report) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Risk & Volatility
WD-40 has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -2.4, suggesting that its stock price is 340% less volatile than the S&P 500.
Valuation and Earnings
This table compares WD-40 and Yatsen”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WD-40 | $590.56 million | 5.44 | $69.64 million | $6.27 | 37.79 |
| Yatsen | $3.45 billion | 0.26 | -$97.02 million | ($0.84) | -11.37 |
WD-40 has higher earnings, but lower revenue than Yatsen. Yatsen is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
91.5% of WD-40 shares are held by institutional investors. 0.8% of WD-40 shares are held by company insiders. Comparatively, 29.0% of Yatsen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares WD-40 and Yatsen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WD-40 | 13.99% | 31.55% | 16.28% |
| Yatsen | -17.03% | -17.36% | -13.86% |
Analyst Recommendations
This is a summary of current ratings for WD-40 and Yatsen, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WD-40 | 0 | 1 | 0 | 1 | 3.00 |
| Yatsen | 0 | 0 | 0 | 0 | 0.00 |
WD-40 presently has a consensus target price of $301.00, suggesting a potential upside of 27.03%. Given WD-40’s stronger consensus rating and higher probable upside, research analysts plainly believe WD-40 is more favorable than Yatsen.
Summary
WD-40 beats Yatsen on 12 of the 14 factors compared between the two stocks.
About WD-40
WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.
About Yatsen
Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
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