Comprehensive Stock Comparison
Compare Colgate-Palmolive Company (CL) vs Coty Inc. (COTY) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | CL | 1.4% revenue growth vs COTY's -3.7% |
| Value | COTY | Lower P/E (8.4x vs 25.7x) |
| Quality / Margins | CL | 10.5% net margin vs COTY's -9.2% |
| Stability / Safety | CL | Beta 0.02 vs COTY's 1.09 |
| Dividends | CL | 2.3% yield, 5-year raise streak, vs COTY's 0.6% |
| Momentum (1Y) | CL | +11.0% vs COTY's -55.9% |
| Efficiency (ROA) | CL | 13.0% ROA vs COTY's -4.8%, ROIC 43.4% vs 2.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Colgate-Palmolive is a global consumer goods company that manufactures and sells oral care, personal care, home care, and pet nutrition products. It generates revenue primarily from its Oral, Personal and Home Care segment — which contributes roughly 85% of sales — and its Pet Nutrition segment, which makes up the remaining 15%. The company's competitive advantage lies in its powerful global brand portfolio, particularly the dominant Colgate brand in oral care, and its extensive distribution network reaching over 200 countries.
Coty is a global beauty company that manufactures and sells prestige fragrances, cosmetics, and skincare products. It generates revenue through two main segments: prestige beauty (approximately 60% of sales) sold through department stores and specialty retailers, and consumer beauty (around 40%) sold through mass-market channels like drugstores and supermarkets. The company's key advantage lies in its extensive portfolio of licensed prestige brands — including Gucci, Burberry, and Calvin Klein — which provides strong brand recognition and distribution leverage.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
CL leads in 5 of 6 categories (Financial Metrics, Profitability & Efficiency). COTY leads in 1 (Valuation Metrics).
Financial Metrics (TTM)
CL is the larger business by revenue, generating $20.4B annually — 3.5x COTY's $5.8B. CL is the more profitable business, keeping 10.5% of every revenue dollar as net income compared to COTY's -9.2%. On growth, CL holds the edge at +5.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CLColgate-Palmolive… | COTYCoty Inc. |
|---|---|---|
| RevenueTrailing 12 months | $20.4B | $5.8B |
| EBITDAEarnings before interest/tax | $3.9B | $373M |
| Net IncomeAfter-tax profit | $2.1B | -$534M |
| Free Cash FlowCash after capex | $3.6B | $394M |
| Gross MarginGross profit ÷ Revenue | +60.1% | +63.7% |
| Operating MarginEBIT ÷ Revenue | +21.3% | +1.2% |
| Net MarginNet income ÷ Revenue | +10.5% | -9.2% |
| FCF MarginFCF ÷ Revenue | +17.8% | +6.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.8% | +0.5% |
| EPS Growth (YoY)Latest quarter vs prior year | -105.1% | -7.0% |
Valuation Metrics
On an enterprise value basis, COTY's 9.3x EV/EBITDA is more attractive than CL's 17.4x.
| Metric | CLColgate-Palmolive… | COTYCoty Inc. |
|---|---|---|
| Market CapShares × price | $79.9B | $2.2B |
| Enterprise ValueMkt cap + debt − cash | $86.6B | $6.2B |
| Trailing P/EPrice ÷ TTM EPS | 37.70x | -5.70x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.66x | 8.44x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 17.40x | 9.34x |
| Price / SalesMarket cap ÷ Revenue | 3.92x | 0.37x |
| Price / BookPrice ÷ Book value/share | 220.31x | 0.55x |
| Price / FCFMarket cap ÷ FCF | 21.99x | 7.89x |
Profitability & Efficiency
CL delivers a 5.8% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $-14 for COTY. COTY carries lower financial leverage with a 1.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to CL's 21.88x. On the Piotroski fundamental quality scale (0–9), CL scores 6/9 vs COTY's 5/9, reflecting solid financial health.
| Metric | CLColgate-Palmolive… | COTYCoty Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +5.8% | -14.4% |
| ROA (TTM)Return on assets | +13.0% | -4.8% |
| ROICReturn on invested capital | +43.4% | +2.3% |
| ROCEReturn on capital employed | +41.6% | +2.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 21.88x | 1.07x |
| Net DebtTotal debt minus cash | $6.7B | $4.0B |
| Cash & Equiv.Liquid assets | $1.3B | $257M |
| Total DebtShort + long-term debt | $8.0B | $4.2B |
| Interest CoverageEBIT ÷ Interest expense | 12.37x | -1.24x |
Total Returns (with DRIP)
A $10,000 investment in CL five years ago would be worth $14,394 today (with dividends reinvested), compared to $3,110 for COTY. Over the past 12 months, CL leads with a +11.0% total return vs COTY's -55.9%. The 3-year compound annual growth rate (CAGR) favors CL at 12.8% vs COTY's -39.4% — a key indicator of consistent wealth creation.
| Metric | CLColgate-Palmolive… | COTYCoty Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +28.3% | -19.3% |
| 1-Year ReturnPast 12 months | +11.0% | -55.9% |
| 3-Year ReturnCumulative with dividends | +43.4% | -77.8% |
| 5-Year ReturnCumulative with dividends | +43.9% | -68.9% |
| 10-Year ReturnCumulative with dividends | +78.5% | -84.1% |
| CAGR (3Y)Annualised 3-year return | +12.8% | -39.4% |
Risk & Volatility
CL is the less volatile stock with a 0.02 beta — it tends to amplify market swings less than COTY's 1.09 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CL currently trades 99.0% from its 52-week high vs COTY's 40.9% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CLColgate-Palmolive… | COTYCoty Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.02x | 1.09x |
| 52-Week HighHighest price in past year | $100.18 | $6.13 |
| 52-Week LowLowest price in past year | $74.55 | $2.44 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +40.9% |
| RSI (14)Momentum oscillator 0–100 | 68.5 | 40.7 |
| Avg Volume (50D)Average daily shares traded | 5.7M | 7.4M |
Analyst Outlook
Wall Street rates CL as "Hold" and COTY as "Hold". Consensus price targets imply 62.2% upside for COTY (target: $4) vs -6.7% for CL (target: $92). For income investors, CL offers the higher dividend yield at 2.27% vs COTY's 0.61%.
| Metric | CLColgate-Palmolive… | COTYCoty Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $92.45 | $4.07 |
| # AnalystsCovering analysts | 43 | 33 |
| Dividend YieldAnnual dividend ÷ price | +2.3% | +0.6% |
| Dividend StreakConsecutive years of raises | 5 | 1 |
| Dividend / ShareAnnual DPS | $2.25 | $0.02 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.5% | 0.0% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Colgate-Palmolive C… (CL) | 100 | 126.85 | +26.8% |
| Coty Inc. (COTY) | 100 | 34.84 | -65.2% |
Colgate-Palmolive C… (CL) returned +44% over 5 years vs Coty Inc. (COTY)'s -69%. A $10,000 investment in CL 5 years ago would be worth $14,394 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Colgate-Palmolive C… (CL) | $15.2B | $20.4B | +34.1% |
| Coty Inc. (COTY) | $4.3B | $5.9B | +35.5% |
Colgate-Palmolive Company's revenue grew from $15.2B (2016) to $20.4B (2025) — a 3.3% CAGR. Coty Inc.'s revenue grew from $4.3B (2016) to $5.9B (2025) — a 3.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Colgate-Palmolive C… (CL) | 16.1% | 10.5% | -34.9% |
| Coty Inc. (COTY) | 3.6% | -6.2% | -273.1% |
Colgate-Palmolive Company's net margin went from 16% (2016) to 10% (2025). Coty Inc.'s net margin went from 4% (2016) to -6% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Colgate-Palmolive C… (CL) | 33.1 | 30 | -9.4% |
| Coty Inc. (COTY) | 27.6 | 80.6 | +192.0% |
Colgate-Palmolive Company has traded in a 22x–37x P/E range over 9 years; current trailing P/E is ~38x. Coty Inc. has traded in a 22x–81x P/E range over 3 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Colgate-Palmolive C… (CL) | 2.72 | 2.63 | -3.3% |
| Coty Inc. (COTY) | 0.44 | -0.44 | -200.0% |
Colgate-Palmolive Company's EPS grew from $2.72 (2016) to $2.63 (2025) — a -0% CAGR. Coty Inc.'s EPS grew from $0.44 (2016) to $-0.44 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
Colgate-Palmolive Company generated $4B FCF in 2025 (+32% vs 2021). Coty Inc. generated $278M FCF in 2025 (+92% vs 2021).
CL vs COTY: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is CL or COTY a better buy right now?
Colgate-Palmolive Company (CL) offers the better valuation at 37.7x trailing P/E (25.7x forward), making it the more compelling value choice. Analysts rate Colgate-Palmolive Company (CL) a "Hold" — based on 43 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CL or COTY?
On forward P/E, Coty Inc. is actually cheaper at 8.4x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — CL or COTY?
Over the past 5 years, Colgate-Palmolive Company (CL) delivered a total return of +43.9%, compared to -68.9% for Coty Inc. (COTY). A $10,000 investment in CL five years ago would be worth approximately $14K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CL returned +78.5% versus COTY's -84.1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CL or COTY?
By beta (market sensitivity over 5 years), Colgate-Palmolive Company (CL) is the lower-risk stock at 0.02β versus Coty Inc.'s 1.09β — meaning COTY is approximately 6263% more volatile than CL relative to the S&P 500. On balance sheet safety, Coty Inc. (COTY) carries a lower debt/equity ratio of 107% versus 22% for Colgate-Palmolive Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — CL or COTY?
Colgate-Palmolive Company (CL) is the more profitable company, earning 10.5% net margin versus -6.2% for Coty Inc. — meaning it keeps 10.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CL leads at 21.3% versus 4.1% for COTY. At the gross margin level — before operating expenses — COTY leads at 64.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is CL or COTY more undervalued right now?
On forward earnings alone, Coty Inc. (COTY) trades at 8.4x forward P/E versus 25.7x for Colgate-Palmolive Company — 17.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for COTY: 62.2% to $4.07.
07Which pays a better dividend — CL or COTY?
All stocks in this comparison pay dividends. Colgate-Palmolive Company (CL) offers the highest yield at 2.3%, versus 0.6% for Coty Inc. (COTY).
08Is CL or COTY better for a retirement portfolio?
For long-horizon retirement investors, Colgate-Palmolive Company (CL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.02), 2.3% yield). Both have compounded well over 10 years (CL: +78.5%, COTY: -84.1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between CL and COTY?
Both stocks operate in the Consumer Defensive sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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