Comparing Kimberly-Clark (KMB) & The Competition

Kimberly-Clark (NASDAQ:KMB) is one of 55 public companies in the “Personal Care Products” industry, but how does it contrast to its competitors? We will compare Kimberly-Clark to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kimberly-Clark and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimberly-Clark	2	10	3	1	2.19
Kimberly-Clark Competitors	905	2947	3664	229	2.42

Kimberly-Clark presently has a consensus price target of $112.71, indicating a potential upside of 3.00%. As a group, “Personal Care Products” companies have a potential upside of 0.45%. Given Kimberly-Clark’s higher possible upside, analysts plainly believe Kimberly-Clark is more favorable than its competitors.

Earnings and Valuation

This table compares Kimberly-Clark and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kimberly-Clark	$16.45 billion	$2.02 billion	11.04
Kimberly-Clark Competitors	$7.78 billion	$1.11 billion	10.09

Kimberly-Clark has higher revenue and earnings than its competitors. Kimberly-Clark is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Kimberly-Clark and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimberly-Clark	19.93%	114.93%	13.83%
Kimberly-Clark Competitors	-4.30%	-61.80%	0.37%

Volatility and Risk

Kimberly-Clark has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Kimberly-Clark’s competitors have a beta of 0.80, indicating that their average share price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

76.3% of Kimberly-Clark shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Personal Care Products” companies are owned by institutional investors. 0.7% of Kimberly-Clark shares are owned by company insiders. Comparatively, 11.7% of shares of all “Personal Care Products” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Kimberly-Clark pays an annual dividend of $5.12 per share and has a dividend yield of 4.7%. Kimberly-Clark pays out 51.7% of its earnings in the form of a dividend. As a group, “Personal Care Products” companies pay a dividend yield of 3.7% and pay out 47.4% of their earnings in the form of a dividend. Kimberly-Clark has increased its dividend for 54 consecutive years.

Summary

Kimberly-Clark beats its competitors on 10 of the 15 factors compared.

Kimberly-Clark Company Profile

Kimberly-Clark Corporation is a global consumer products company that develops and sells personal care, tissue and hygiene products. Its offerings include diapers and training pants, feminine care and adult incontinence products, facial and bathroom tissues, paper towels and wipes. The company’s portfolio includes brands such as Huggies, Kleenex, Scott, Cottonelle, Depend, Poise and Kotex. Kimberly-Clark also provides products for businesses and institutions, including workplace and professional-use tissue and hygiene products.