Avon Products (NYSE:AVP) and Pola Orbis (OTCMKTS:PORBF) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Risk & Volatility

Avon Products has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Pola Orbis has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

74.8% of Avon Products shares are held by institutional investors. 0.7% of Avon Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Avon Products and Pola Orbis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avon Products 2.61% -7.67% 1.80%
Pola Orbis N/A N/A N/A

Earnings and Valuation

This table compares Avon Products and Pola Orbis’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avon Products $5.72 billion 0.15 $22.00 million $0.06 32.17
Pola Orbis $2.01 billion 3.12 N/A N/A N/A

Avon Products has higher revenue and earnings than Pola Orbis.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Avon Products and Pola Orbis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avon Products 0 3 2 0 2.40
Pola Orbis 0 0 0 0 N/A

Avon Products presently has a consensus target price of $2.65, suggesting a potential upside of 37.31%. Given Avon Products’ higher probable upside, research analysts clearly believe Avon Products is more favorable than Pola Orbis.

Summary

Avon Products beats Pola Orbis on 8 of the 10 factors compared between the two stocks.

About Avon Products

Avon Products, Inc. manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products, and nutritional products. It sells its products through direct selling by representatives, who are independent contractors. The company was founded in 1886 and is headquartered in London, the United Kingdom.

About Pola Orbis

POLA Orbis Holdings Inc., through its subsidiaries, develops, manufactures, and sells cosmetics and related products in Japan and internationally. The company's Beauty Care segment offers cosmetics; skincare products; health foods; and fashion products, such as women's underwear, women's apparel, and jewelry under the POLA, ORBIS, ORLANE, DECENCIA, THREE, H2O PLUS, and Jurlique brand names, as well as provides cosmetics, consulting, and facial esthetic treatment services. Its Real Estate segment is involved in the leasing of office buildings and residential properties. The company's Others segment develops, manufactures, and sells cosmetics and quasi-pharmaceutical drugs, as well as provides pharmaceutical contract manufacturing services. This segment also provides building maintenance services. The company sells its products through department, directly operated retail, duty-free shops, and specialty cosmetics stores, as well as through door-to-door sales, and mail-order sales. POLA Orbis Holdings Inc. was founded in 1929 and is headquartered in Tokyo, Japan.

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