Analyzing Swatch Group (OTCMKTS:SWGAY) & Colgate-Palmolive (NYSE:CL)

Swatch Group (OTCMKTS:SWGAY) and Colgate-Palmolive (NYSE:CL) are both large-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Dividends

Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Colgate-Palmolive pays an annual dividend of $2.08 per share and has a dividend yield of 2.7%. Colgate-Palmolive pays out 58.4% of its earnings in the form of a dividend. Colgate-Palmolive has increased its dividend for 63 consecutive years. Colgate-Palmolive is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

80.4% of Colgate-Palmolive shares are held by institutional investors. 0.4% of Colgate-Palmolive shares are held by 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 Swatch Group and Colgate-Palmolive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swatch Group	N/A	N/A	N/A
Colgate-Palmolive	14.55%	377.63%	17.86%

Analyst Recommendations

This is a summary of current ratings and target prices for Swatch Group and Colgate-Palmolive, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swatch Group	2	0	0	0	1.00
Colgate-Palmolive	1	5	8	0	2.50

Colgate-Palmolive has a consensus target price of $91.50, suggesting a potential upside of 18.68%. Given Colgate-Palmolive’s stronger consensus rating and higher possible upside, analysts plainly believe Colgate-Palmolive is more favorable than Swatch Group.

Volatility and Risk

Swatch Group has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.

Earnings and Valuation

This table compares Swatch Group and Colgate-Palmolive”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swatch Group	$7.65 billion	3.34	$219.23 million	N/A	N/A
Colgate-Palmolive	$20.10 billion	3.10	$2.89 billion	$3.56	21.66

Colgate-Palmolive has higher revenue and earnings than Swatch Group.

Summary

Colgate-Palmolive beats Swatch Group on 12 of the 15 factors compared between the two stocks.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.