Haleon (NYSE:HLN) and Procter & Gamble (NYSE:PG) Financial Review

Procter & Gamble (NYSE:PG) and Haleon (NYSE:HLN) 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, earnings, valuation, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.44%	31.36%	13.09%
Haleon	N/A	N/A	N/A

Dividends

Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 3.0%. Haleon pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Procter & Gamble pays out 65.7% of its earnings in the form of a dividend. Haleon pays out 30.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. 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.

Volatility & Risk

Procter & Gamble has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500. Comparatively, Haleon has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Procter & Gamble and Haleon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	11	13	0	2.54
Haleon	1	5	3	2	2.55

Procter & Gamble currently has a consensus target price of $161.19, indicating a potential upside of 12.16%. Given Procter & Gamble’s higher probable upside, research analysts plainly believe Procter & Gamble is more favorable than Haleon.

Valuation and Earnings

This table compares Procter & Gamble and Haleon”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$87.03 billion	3.84	$16.05 billion	$6.62	21.71
Haleon	$14.54 billion	3.06	$2.20 billion	$0.39	25.92

Procter & Gamble has higher revenue and earnings than Haleon. Procter & Gamble is trading at a lower price-to-earnings ratio than Haleon, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

65.8% of Procter & Gamble shares are held by institutional investors. Comparatively, 6.7% of Haleon shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Procter & Gamble beats Haleon on 14 of the 18 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 Haleon

Haleon plc, together with its subsidiaries, engages in the research, development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides oral health products, such as toothpastes, mouth washes, and denture care products under the Sensodyne, Polident, Parodontax, Biotene brands; and vitamins, minerals, and supplements under Centrum, Emergen-C, Caltrate brands. It also offers various over-the-counter products comprising nasal drops, and cold, flu, and allergy relief products under Otrivine, Theraflu, and Flonase brands for respiratory issues; anti-inflammatory and pain relief products under Voltaren, Panadol, and Advil brands; and antacids and antihistamine products under TUMS, ENO, and Fenistil brands for digestive health and other issues. The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was founded in 1715 and is headquartered in Weybridge, the United Kingdom.