Friday, July 11, 2014

Colgate Palmolive and Procter and Gamble


The Colgate-Palmolive company is a multinational company based in the New York City, US. This company was founded in the year 1806 by William Colgate. It focuses on the health care and personal products and oral hygiene of people. Colgate Palmolive since has launched products worldwide, from toothbrushes to pastes to soaps and etc.
 
The manufacturing industry in the health care sector has been bolstered by launching new lethal products every day. P&G and Colgate Palmolive are considered as the top brands when it comes to health care sector. However, it is believed that Colgate has beaten P&G in oral health care. “Compared to P&G, Colgate offers a much larger assortment of oral care products in a wide price range.  This allows consumers to trade up and down gradually depending on macroeconomic conditions without impacting Colgate’s sales volume.” 

These companies started their journey in this industry as a small soap and candle business and gradually captivated a major chunk of the market. Today, Proctor & Gamble and Colgate stock are considered as the top of the line organizations with many household brands that function under their banner.
Although there is a difference in terms of the structure of these organizations, they still have a lot in common. Colgate Palmolive is comparatively a smaller venture with a fairly less market cap of approximately $31 billion but Proctor and Gamble is a big giant of the industry in general with a market cap as high as $123 billion. 

Colgate stock price has seen tremendous growth in just a matter of 18 months and the company is firm to increase their growth even further in the years to come. The revenues of both these organizations are mind boggling with a great increase in growth expected in fiscal year 2014 adding more to their glory. Although analysts still give it a neutral rating but despite that it shows a prosperous and promising future in the years ahead.

On the contrary Proctor and Gamble has a more stable position in the industry with a sound past that has paved way for a better future, the company has been sufficient in overcoming their capital needs and are now primarily focusing on their top and bottom line.  Moreover the growth in revenue is expected to increase substantially by 4-6% in FY14 making it a fairly good offer.
Hence in a nutshell, Proctor and Gamble and Colgate Palmolive are big names that have a sound share in the market with a promising future in the coming years with the growth they have projected in the past.

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