Financial Contrast: RH (NYSE:RH) and Kenvue (NYSE:KVUE)

RH (NYSE:RH) and Kenvue (NYSE:KVUE) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk & Volatility

RH has a beta of 2.15, suggesting that its share price is 115% more volatile than the S&P 500. Comparatively, Kenvue has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares RH and Kenvue”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RH	$3.34 billion	1.23	$72.41 million	$5.37	40.71
Kenvue	$15.46 billion	2.36	$1.03 billion	$0.74	25.71

Kenvue has higher revenue and earnings than RH. Kenvue is trading at a lower price-to-earnings ratio than RH, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for RH and Kenvue, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RH	3	5	9	0	2.35
Kenvue	1	7	5	0	2.31

RH currently has a consensus target price of $259.29, suggesting a potential upside of 18.60%. Kenvue has a consensus target price of $24.21, suggesting a potential upside of 27.22%. Given Kenvue’s higher possible upside, analysts plainly believe Kenvue is more favorable than RH.

Profitability

This table compares RH and Kenvue’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RH	3.20%	-92.81%	3.11%
Kenvue	9.37%	20.06%	7.78%

Insider and Institutional Ownership

90.2% of RH shares are owned by institutional investors. Comparatively, 97.6% of Kenvue shares are owned by institutional investors. 27.0% of RH shares are owned by insiders. Comparatively, 1.7% of Kenvue shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Kenvue beats RH on 8 of the 14 factors compared between the two stocks.

About RH

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.