Head to Head Contrast: Natura &Co (NYSE:NTCOY) and PZ Cussons (OTC:PZCUY)

Natura &Co (NYSE:NTCOY) and PZ Cussons (OTC:PZCUY) are both consumer defensive companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Insider & Institutional Ownership

6.1% of Natura &Co shares are owned by institutional investors. 0.1% of Natura &Co shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Natura &Co and PZ Cussons’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natura &Co	$5.36 billion	0.72	$595.64 million	$0.32	17.38
PZ Cussons	N/A	N/A	N/A	C$0.43	5.29

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

Dividends

Natura &Co pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. PZ Cussons pays an annual dividend of C$0.09 per share and has a dividend yield of 4.0%. Natura &Co pays out 9.4% of its earnings in the form of a dividend. PZ Cussons pays out 21.1% 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Natura &Co and PZ Cussons, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natura &Co	0	0	0	0	N/A
PZ Cussons	0	0	0	0	N/A

Profitability

This table compares Natura &Co and PZ Cussons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Natura &Co	10.29%	-6.89%	-3.48%
PZ Cussons	N/A	N/A	N/A

Summary

Natura &Co beats PZ Cussons on 6 of the 10 factors compared between the two stocks.

About Natura &Co

Natura &Co Holding S.A. engages in the manufacturing, distribution, and sale of cosmetics, fragrances, and personal care products in Brazil, Asia, Europe, North America, South America, the Middle East, Africa, and Oceania. The company operates through Natura &Co Latam and Avon International segments. It markets its products under the Natura and Avon brand names through e-commerce, direct selling, business-to-business, franchises, physical stores, and retail markets. Natura &Co Holding S.A. was founded in 1969 and is headquartered in São Paulo, Brazil.

About PZ Cussons

PZ Cussons plc manufactures, distributes, markets, and sells baby, beauty, and hygiene products in Europe, the Americas, the Asia Pacific, and Africa. The company offers toiletries, pharmaceuticals, electrical goods, edible oils, fats and spreads, nutritional products, shampoos, body washes, toothpastes, toothbrushes, skin and hair care products, food pouches, cereals, snacks, flavors, and fragrances; beauty soaps, lotions, wipes, creams, shower gels, foam-bursts, bar soaps, deodorants, bath infusions, handwashes, and conditioners; ointments; dishwashing liquids, dishwasher tablets, dishwasher gels, dishwasher capsules, rinse aids, liquid detergents, laundry soaps, and laundry solutions; and cooking and vegetable oils. It also provides refrigerators, freezers, air conditioners, washing machines, microwaves, table and standing cookers, generators, stabilizers, TVs, DVDs, and home theatres. The company sells its products under the Cussons Kids, Rafferty's Garden, Cussons Baby, St.Tropez, Sanctuary Spa, Fudge Professional, Charles Worthington, Fudge Urban, Venus for You, Carex, Imperial Leather, Original Source, Premier Cool, Joy, Childs Farm, Haier Thermocool, Morning Fresh, Bayley's of Bond Street, Canoe, Zip, Robb, Radiant, Mamador, and Devon King's brand names. The company was formerly known as Paterson Zochonis Plc and changed its name to PZ Cussons Plc in 2002. PZ Cussons plc was incorporated in 1884 and is headquartered in Manchester, the United Kingdom.