Financial Survey: Colgate-Palmolive (NYSE:CL) vs. Tokyo Lifestyle (NASDAQ:TKLF)

Tokyo Lifestyle (NASDAQ:TKLF) and Colgate-Palmolive (NYSE:CL) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Risk and Volatility

Tokyo Lifestyle has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Colgate-Palmolive has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Valuation and Earnings

This table compares Tokyo Lifestyle and Colgate-Palmolive”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Lifestyle	$210.12 million	0.05	$6.64 million	N/A	N/A
Colgate-Palmolive	$20.10 billion	3.13	$2.89 billion	$3.57	21.86

Colgate-Palmolive has higher revenue and earnings than Tokyo Lifestyle.

Profitability

This table compares Tokyo Lifestyle and Colgate-Palmolive’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Lifestyle	N/A	N/A	N/A
Colgate-Palmolive	14.47%	333.39%	17.57%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tokyo Lifestyle and Colgate-Palmolive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Lifestyle	1	0	0	0	1.00
Colgate-Palmolive	1	5	9	0	2.53

Colgate-Palmolive has a consensus target price of $89.87, suggesting a potential upside of 15.15%. Given Colgate-Palmolive’s stronger consensus rating and higher possible upside, analysts clearly believe Colgate-Palmolive is more favorable than Tokyo Lifestyle.

Insider & Institutional Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. 75.4% of Tokyo Lifestyle shares are owned by insiders. Comparatively, 0.3% of Colgate-Palmolive 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.

Summary

Colgate-Palmolive beats Tokyo Lifestyle on 11 of the 12 factors compared between the two stocks.

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.

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.