L'Oréal (OTCMKTS:LRLCY) and Iberdrola (OTCMKTS:IBDRY) are both large-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Dividends
L'Oréal pays an annual dividend of $0.68 per share and has a dividend yield of 0.9%. Iberdrola pays an annual dividend of $1.24 per share and has a dividend yield of 2.6%. L'Oréal pays out 54.4% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares L'Oréal and Iberdrola's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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L'Oréal | $33.46 billion | 6.20 | $4.20 billion | $1.25 | 59.32 |
Iberdrola | $40.82 billion | 1.88 | $3.82 billion | N/A | N/A |
L'Oréal has higher earnings, but lower revenue than Iberdrola.
Institutional and Insider Ownership
0.7% of L'Oréal shares are held by institutional investors. Comparatively, 0.2% of Iberdrola shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares L'Oréal and Iberdrola's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
L'Oréal | N/A | N/A | N/A |
Iberdrola | 10.44% | 7.63% | 2.88% |
Analyst Recommendations
This is a summary of current recommendations and price targets for L'Oréal and Iberdrola, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
L'Oréal | 2 | 3 | 8 | 0 | 2.46 |
Iberdrola | 1 | 5 | 8 | 0 | 2.50 |
L'Oréal presently has a consensus target price of $76.00, suggesting a potential upside of 2.49%. Given L'Oréal's higher probable upside, research analysts clearly believe L'Oréal is more favorable than Iberdrola.
Risk and Volatility
L'Oréal has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Iberdrola has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.
Summary
Iberdrola beats L'Oréal on 7 of the 13 factors compared between the two stocks.