Procter & Gamble (NYSE:PG) and Hermes International (OTCMKTS:HESAY) Financial Comparison

Procter & Gamble (NYSE:PG) and Hermes International (OTCMKTS:HESAY) are both large-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Dividends

Procter & Gamble pays an annual dividend of $4.23 per share and has a dividend yield of 2.8%. Hermes International pays an annual dividend of $2.15 per share and has a dividend yield of 0.9%. Procter & Gamble pays out 65.0% of its earnings in the form of a dividend. Procter & Gamble has raised its dividend for 70 consecutive years. Procter & Gamble is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

65.8% of Procter & Gamble shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Procter & Gamble and Hermes International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.95%	32.69%	13.49%
Hermes International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Procter & Gamble and Hermes International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	8	10	1	2.63
Hermes International	0	4	0	0	2.00

Procter & Gamble currently has a consensus price target of $173.94, indicating a potential upside of 14.17%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, research analysts clearly believe Procter & Gamble is more favorable than Hermes International.

Valuation and Earnings

This table compares Procter & Gamble and Hermes International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	4.23	$15.97 billion	$6.51	23.40
Hermes International	$16.42 billion	15.62	$4.98 billion	N/A	N/A

Procter & Gamble has higher revenue and earnings than Hermes International.

Summary

Procter & Gamble beats Hermes International on 13 of the 15 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

About Hermes International

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.