Financial Survey: KP Tissue (OTCMKTS:KPTSF) and Colgate-Palmolive (NYSE:CL)

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

Dividends

KP Tissue pays an annual dividend of $0.36 per share and has a dividend yield of 3.9%. Colgate-Palmolive pays an annual dividend of $2.12 per share and has a dividend yield of 2.3%. KP Tissue pays out -160.6% of its earnings in the form of a dividend. Colgate-Palmolive pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Colgate-Palmolive has raised its dividend for 63 consecutive years. KP Tissue is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares KP Tissue and Colgate-Palmolive”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KP Tissue	N/A	N/A	N/A	($0.22)	-41.35
Colgate-Palmolive	$21.05 billion	3.50	$2.13 billion	$2.52	36.69

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for KP Tissue and Colgate-Palmolive, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KP Tissue	0	1	0	0	2.00
Colgate-Palmolive	0	7	12	0	2.63

Colgate-Palmolive has a consensus price target of $99.00, suggesting a potential upside of 7.07%. Given Colgate-Palmolive’s stronger consensus rating and higher possible upside, analysts clearly believe Colgate-Palmolive is more favorable than KP Tissue.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KP Tissue	N/A	N/A	N/A
Colgate-Palmolive	9.68%	464.63%	18.34%

Insider & Institutional Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. 0.4% 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 KP Tissue on 12 of the 14 factors compared between the two stocks.

About KP Tissue

KP Tissue Inc., through its interest in Kruger Products L.P., produces, distributes, markets, and sells a range of disposable tissue products in Canada and the United States. The company operates through two segments, Consumer and Away-From-Home. It offers bathroom and facial tissues, paper towels, and napkins. The company markets its products under the Cashmere, SpongeTowels, Scotties, Purex, Bonterra, Metro, White Swan, White Cloud, Embassy, Satinelle, and Chalet brand names, as well as under private labels. KP Tissue Inc. was incorporated in 2012 and is headquartered in Mississauga, Canada.

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.