Lee Pharmaceuticals (OTCMKTS:LPHM) versus Colgate-Palmolive (NYSE:CL) Financial Analysis

Colgate-Palmolive (NYSE:CL) and Lee Pharmaceuticals (OTCMKTS:LPHM) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Earnings & Valuation

This table compares Colgate-Palmolive and Lee Pharmaceuticals’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$19.99 billion	4.34	$2.30 billion	$3.16	33.48
Lee Pharmaceuticals	N/A	N/A	N/A	N/A	N/A

Colgate-Palmolive has higher revenue and earnings than Lee Pharmaceuticals.

Profitability

This table compares Colgate-Palmolive and Lee Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	14.21%	470.19%	17.68%
Lee Pharmaceuticals	N/A	N/A	N/A

Volatility & Risk

Colgate-Palmolive has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Lee Pharmaceuticals has a beta of 669.91, indicating that its share price is 66,891% more volatile than the S&P 500.

Institutional and Insider Ownership

80.4% of Colgate-Palmolive shares are owned by institutional investors. 0.3% of Colgate-Palmolive shares are owned by company insiders. Comparatively, 55.0% of Lee Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Colgate-Palmolive and Lee Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	0	8	13	0	2.62
Lee Pharmaceuticals	0	0	0	0	N/A

Colgate-Palmolive presently has a consensus price target of $101.11, suggesting a potential downside of 4.43%. Given Colgate-Palmolive’s higher probable upside, analysts plainly believe Colgate-Palmolive is more favorable than Lee Pharmaceuticals.

Summary

Colgate-Palmolive beats Lee Pharmaceuticals on 7 of the 9 factors compared between the two stocks.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

About Lee Pharmaceuticals

Lee Pharmaceuticals, Inc., through its subsidiary, RONN Motor Group, Inc., focuses on the design and development, manufacture, marketing, and sale of all-electric, hydrogen-fuel cell, and zero-emission new energy vehicles (NEVs) in the United States, China, and internationally. It intends to offer hydrogen fuel cell NEVs, including sports cars, sedans, SUVs, trucks, and buses. The company was founded in 2013 and is based in Scottsdale, Arizona.