Analyzing Reckitt Benckiser Group (OTCMKTS:RBGPF) and Natura &Co (NYSE:NTCOY)

Natura &Co (NYSE:NTCOY) and Reckitt Benckiser Group (OTCMKTS:RBGPF) are both consumer defensive companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Dividends

Natura &Co pays an annual dividend of $0.03 per share and has a dividend yield of 0.5%. Reckitt Benckiser Group pays an annual dividend of $1.37 per share and has a dividend yield of 2.4%. Natura &Co pays out 9.4% of its earnings in the form of a dividend. Reckitt Benckiser Group pays out 52.9% 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 summary of recent recommendations for Natura &Co and Reckitt Benckiser Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natura &Co	0	0	0	0	N/A
Reckitt Benckiser Group	0	0	0	0	N/A

Institutional and Insider Ownership

6.1% of Natura &Co shares are held by institutional investors. Comparatively, 39.7% of Reckitt Benckiser Group shares are held by institutional investors. 0.1% of Natura &Co shares are held 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.

Valuation and Earnings

This table compares Natura &Co and Reckitt Benckiser Group’s 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
Reckitt Benckiser Group	N/A	N/A	N/A	$2.59	22.21

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

Profitability

This table compares Natura &Co and Reckitt Benckiser Group’s 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%
Reckitt Benckiser Group	N/A	N/A	N/A

Summary

Reckitt Benckiser Group beats Natura &Co 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 Reckitt Benckiser Group

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products worldwide. It offers acne treatment creams, facial washes, and cleansing pads; germ protection products; condoms; heartburn and indigestion solutions; joints health products; chest congestion, cough, and sinus remedies; brain health products; migraine-headaches and rheumatic pain products; sore throat medications; and hair removal products under the Airborne, Clearasil, Dettol, Durex, Gaviscon, Move Free, Neuriva, Nurofen, Mucinex, Strepsils, and Veet brands. The company also offers home fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfecting sprays wipes, laundry sanitisers, and others; sprays, baits, and plug-ins for pest control; stain removals; and fabric washing under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands. In addition, it provides nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.