Church & Dwight (NYSE:CHD) and Tokyo Lifestyle (NASDAQ:TKLF) Critical Analysis

Church & Dwight (NYSE:CHD) and Tokyo Lifestyle (NASDAQ:TKLF) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Dividends

Church & Dwight pays an annual dividend of $1.23 per share and has a dividend yield of 1.3%. Tokyo Lifestyle pays an annual dividend of $0.08 per share and has a dividend yield of 3.9%. Church & Dwight pays out 40.5% of its earnings in the form of a dividend. Church & Dwight has increased its dividend for 29 consecutive years.

Valuation & Earnings

This table compares Church & Dwight and Tokyo Lifestyle”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Church & Dwight	$6.20 billion	3.59	$736.80 million	$3.04	30.88
Tokyo Lifestyle	$210.12 million	0.04	$6.64 million	N/A	N/A

Church & Dwight has higher revenue and earnings than Tokyo Lifestyle.

Volatility and Risk

Church & Dwight has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Profitability

This table compares Church & Dwight and Tokyo Lifestyle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Church & Dwight	11.81%	20.51%	9.62%
Tokyo Lifestyle	N/A	N/A	N/A

Institutional & Insider Ownership

86.6% of Church & Dwight shares are held by institutional investors. 1.2% of Church & Dwight shares are held by insiders. Comparatively, 75.4% of Tokyo Lifestyle shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Church & Dwight and Tokyo Lifestyle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Church & Dwight	1	8	9	0	2.44
Tokyo Lifestyle	1	0	0	0	1.00

Church & Dwight currently has a consensus price target of $102.59, suggesting a potential upside of 9.28%. Given Church & Dwight’s stronger consensus rating and higher possible upside, research analysts plainly believe Church & Dwight is more favorable than Tokyo Lifestyle.

Summary

Church & Dwight beats Tokyo Lifestyle on 12 of the 15 factors compared between the two stocks.

About Church & Dwight

Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products Division (SPD), and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment is involved in the personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom. The SPD segment consists of sales to businesses and participates in three product areas namely, animal nutrition, specialty chemicals, and commercial and professional. The Corporate segment includes equity in earnings of affiliates. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.

About Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.