Contrasting Church & Dwight (NYSE:CHD) and Tokyo Lifestyle (NASDAQ:TKLF)

Tokyo Lifestyle (NASDAQ:TKLF) and Church & Dwight (NYSE:CHD) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Profitability

This table compares Tokyo Lifestyle and Church & Dwight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Lifestyle	N/A	N/A	N/A
Church & Dwight	11.81%	20.51%	9.62%

Risk and Volatility

Tokyo Lifestyle has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Church & Dwight has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Tokyo Lifestyle and Church & Dwight, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Lifestyle	1	0	0	0	1.00
Church & Dwight	1	8	9	0	2.44

Church & Dwight has a consensus target price of $102.59, suggesting a potential upside of 4.47%. Given Church & Dwight’s stronger consensus rating and higher probable upside, analysts clearly believe Church & Dwight is more favorable than Tokyo Lifestyle.

Insider and Institutional Ownership

86.6% of Church & Dwight shares are owned by institutional investors. 75.4% of Tokyo Lifestyle shares are owned by company insiders. Comparatively, 1.2% of Church & Dwight shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Tokyo Lifestyle pays an annual dividend of $0.08 per share and has a dividend yield of 3.8%. Church & Dwight pays an annual dividend of $1.23 per share and has a dividend yield of 1.3%. Church & Dwight pays out 40.5% of its earnings in the form of a dividend. Church & Dwight has raised its dividend for 29 consecutive years.

Valuation and Earnings

This table compares Tokyo Lifestyle and Church & Dwight”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Lifestyle	$210.12 million	0.04	$6.64 million	N/A	N/A
Church & Dwight	$6.20 billion	3.75	$736.80 million	$3.04	32.30

Church & Dwight has higher revenue and earnings than Tokyo Lifestyle.

Summary

Church & Dwight beats Tokyo Lifestyle on 12 of the 15 factors compared between the two stocks.

About Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.

About Church & Dwight

Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products Division (SPD), and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment is involved in the personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom. The SPD segment consists of sales to businesses and participates in three product areas namely, animal nutrition, specialty chemicals, and commercial and professional. The Corporate segment includes equity in earnings of affiliates. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.