Unilever Vs. PG Stock

Stock Performance Comparison - UL stock has seen little change, moving slightly from $55 in early January 2021 to around $60 now, while PG stock increased by about 45% from $125 to $180 over the same period [2] - UL stock returns were -8% in 2021, -3% in 2022, and 0% in 2023, while PG stock returns were 21%, -5%, and -1% respectively [3] - Both UL and PG underperformed the S&P 500, which rose 60% over the same period [2][3] Revenue Growth Analysis - Unilever's revenue grew at an average annual rate of 0.9% from $62.4 billion in 2020 to $63.9 billion in 2023, while P&G's sales rose at a 3.4% average rate from $76.2 billion in fiscal 2021 to $84.0 billion in fiscal 2024 [5] - Unilever's sales were up 4.3% for the nine-month period ending Sep 2024, led by a 2.9% rise in volumes and 1.3% pricing gains [6] - P&G reported a 4% rise in total organic sales in fiscal 2024, driven by a 4% growth in pricing, while volume/mix remained flat [8] Segment Performance - Unilever's revenue is divided into Personal Care, Food & Refreshments, and Home Care, with personal and home care sales trending well, while food and refreshment sales saw slower growth [6] - P&G's largest segment, Fabric & Home Care, contributes around 35% of the company's revenues and has driven overall sales growth, while Beauty and Baby Care segments have seen tepid growth [8] - P&G's Beauty sales fell 5% in the previous quarter, with Skin Care products plunging 20% due to lower volume and unfavorable mix [9][10] Profitability and Financial Position - Unilever's adjusted net margin rose from 8.6% in 2020 to 10.4% in 2023, while P&G's net income margin remained stable at 19.4% in fiscal 2024 [11] - P&G's debt increased from $32.8 billion in fiscal 2021 to $36.2 billion now, while Unilever's debt declined from $33.6 billion in 2020 to $31.8 billion in 2023 [12] - P&G's cash increased from $10.3 billion to $12.2 billion in the last three years, while Unilever's cash declined from $6.8 billion to $4.5 billion over the same period [13] Valuation and Prospects - UL stock trades at 19x forward earnings, versus 26x for PG stock, with both trading at multiples higher than their historical averages [1][16] - Unilever is expected to see robust volume growth across categories, while P&G faces headwinds in its Beauty and Baby Care segments [15] - Unilever's largest segment, Home Care, is performing well with mid-single-digit volume growth this year [15]