Home > Comparison > Consumer Defensive > CL vs ACU
The strategic rivalry between Colgate-Palmolive Company and Acme United Corporation shapes the competitive landscape of the Consumer Defensive sector. Colgate-Palmolive dominates as a global, diversified household and personal products giant. Acme United operates as a niche supplier focused on first aid and cutting tools with a leaner model. This analysis weighs their distinct corporate strategies to identify which offers superior risk-adjusted returns for a balanced, long-term portfolio.
Table of contents
Companies Overview
Colgate-Palmolive and Acme United stand as influential players in the global household and personal products market.
Colgate-Palmolive Company: Global Consumer Products Leader
Colgate-Palmolive dominates with its diverse portfolio in oral, personal, home care, and pet nutrition products. It generates revenue primarily through branded consumer goods sold worldwide via retailers and eCommerce. In 2026, it strategically emphasizes expanding its Pet Nutrition segment alongside maintaining leadership in oral care.
Acme United Corporation: Specialty Cutting and Safety Tools Provider
Acme United focuses on niche markets supplying cutting, sharpening, measuring, and first aid products. Its revenue stems from branded tools and safety solutions sold to schools, offices, hardware, and industrial sectors mainly in North America and Europe. The company’s 2026 strategy prioritizes broadening distribution channels and expanding product innovation in safety kits.
Strategic Collision: Similarities & Divergences
Both companies operate in Consumer Defensive but pursue distinct philosophies: Colgate-Palmolive leverages a global branded product ecosystem, while Acme United targets specialized product categories with focused distribution. Their primary battleground is broad market reach versus niche specialization. This contrast shapes their investment profiles—Colgate offers scale and diversification; Acme United provides focused growth in specialized segments.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Colgate-Palmolive Company (CL) | Acme United Corporation (ACU) |
|---|---|---|
| Revenue | 20.1B | 194.5M |
| Cost of Revenue | 7.99B | 118.1M |
| Operating Expenses | 7.72B | 62.2M |
| Gross Profit | 12.1B | 76.4M |
| EBITDA | 4.85B | 20.4M |
| EBIT | 4.25B | 14.4M |
| Interest Expense | 292M | 2.08M |
| Net Income | 2.89B | 10.0M |
| EPS | 3.53 | 2.71 |
| Fiscal Year | 2024 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs a more efficient and profitable corporate engine based on recent financial performance.
Colgate-Palmolive Company Analysis
Colgate-Palmolive steadily grows revenue, reaching $20.1B in 2024, with net income climbing to $2.89B. Its gross margin remains robust at 60.2%, and net margin improves to 14.4%. The firm drives efficiency gains, evidenced by a 15.5% EBIT growth and a 26.7% EPS rise year-over-year, signaling strong momentum.
Acme United Corporation Analysis
Acme United posts modest revenue growth to $194.5M in 2024, with net income at $10M. Its gross margin holds at a solid 39.3%, but EBIT margin softens to 7.4%. The company faces headwinds as EBIT and net margin decline sharply by over 44%, reflecting recent operational challenges and weaker profitability momentum.
Margin Strength vs. Profitability Momentum
Colgate-Palmolive dominates with superior scale, margins, and consistent bottom-line growth. Acme United, although showing favorable long-term net income growth, struggles with recent margin compression and declining profitability. For investors prioritizing stable margins and earnings momentum, Colgate-Palmolive presents the more attractive profile.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Colgate-Palmolive Company (CL) | Acme United Corporation (ACU) |
|---|---|---|
| ROE | 13.63% | 9.37% |
| ROIC | 30.56% | 8.16% |
| P/E | 25.73 | 13.78 |
| P/B | 350.65 | 1.29 |
| Current Ratio | 0.92 | 4.17 |
| Quick Ratio | 0.58 | 1.71 |
| D/E | 40.15 | 0.31 |
| Debt-to-Assets | 53.05% | 20.25% |
| Interest Coverage | 15.01 | 6.79 |
| Asset Turnover | 1.25 | 1.20 |
| Fixed Asset Turnover | 4.55 | 5.33 |
| Payout Ratio | 61.92% | 22.17% |
| Dividend Yield | 2.41% | 1.61% |
| Fiscal Year | 2024 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, unveiling hidden risks and operational strengths crucial for investor insight.
Colgate-Palmolive Company
Colgate posts a robust ROE of 13.6% and a strong net margin at 14.4%, signaling solid profitability. The P/E ratio of 25.7 suggests a stretched valuation compared to sector averages. The firm delivers a 2.41% dividend yield, rewarding shareholders steadily amid reinvestment in operational efficiency and innovation.
Acme United Corporation
Acme United shows a modest ROE of 9.4% and a lower net margin of 5.15%, indicating moderate profitability. Its P/E ratio of 13.8 and P/B of 1.29 reflect an attractive valuation. The company maintains a 1.61% dividend yield, balancing shareholder returns with growth-focused capital allocation.
Valuation Discipline vs. Profitability Strength
Colgate commands a premium valuation justified by superior profitability and operational returns, despite some liquidity concerns. Acme United offers a more conservative valuation with less profitability but stronger balance sheet metrics. Investors prioritizing stable income and efficiency may prefer Colgate; those favoring value and capital preservation might lean toward Acme.
Which one offers the Superior Shareholder Reward?
I see Colgate-Palmolive (CL) delivers a 2.4% dividend yield with a 62% payout ratio, supported by strong free cash flow coverage (~86%). Their buybacks are steady, complementing dividends for total returns. Acme United (ACU) yields 1.6% with a low 22% payout, focusing on reinvestment and moderate buybacks. CL’s distribution is more sustainable and rewarding for 2026 investors, balancing income and capital return effectively.
Comparative Score Analysis: The Strategic Profile
The radar chart below reveals the fundamental DNA and trade-offs of Colgate-Palmolive Company and Acme United Corporation:
Colgate-Palmolive excels in profitability metrics with top ROE and ROA scores (5 each), signaling efficient capital and asset use. However, it carries a risky balance sheet, indicated by a very unfavorable debt-to-equity score (1). Acme United posts moderate scores across all categories, showing a more balanced but less dominant profile. Colgate relies on operational excellence but faces financial leverage concerns; Acme offers steadier financial risk management but lacks standout profitability.
Bankruptcy Risk: Solvency Showdown
Colgate’s Altman Z-Score of 6.75 versus Acme United’s 4.08 places both firmly in the safe zone. This indicates low bankruptcy risk for either company in the current economic cycle:
Financial Health: Quality of Operations
Acme United scores a stronger 7 compared to Colgate’s 6 on the Piotroski F-Score, reflecting more robust internal financial health. Acme demonstrates fewer red flags in profitability, leverage, and liquidity metrics:
How are the two companies positioned?
This section dissects the operational DNA of Colgate-Palmolive and Acme United by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how both firms diversify their income streams and where their primary sector bets lie:
Colgate-Palmolive anchors its revenue in Oral, Personal and Home Care at $15.6B, with Pet Nutrition contributing $4.5B, showing a focused yet two-pronged approach. Acme United pivots between Product B at $119M and Product A at $75M, exhibiting a more balanced mix. Colgate’s concentration signals strong ecosystem lock-in, while Acme’s split reduces concentration risk but may lack scale dominance.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Colgate-Palmolive Company and Acme United Corporation:
Colgate-Palmolive Company Strengths
- Strong profitability with 14.37% net margin
- ROIC at 30.56% well above WACC
- High asset and fixed asset turnover
- Favorable interest coverage and dividend yield
Acme United Corporation Strengths
- Favorable valuation with low PE and PB ratios
- Low debt-to-equity and debt-to-assets ratios
- Solid asset and fixed asset turnover
- Favorable quick ratio and interest coverage
Colgate-Palmolive Company Weaknesses
- High debt-to-assets at 53.05%
- Low current and quick ratios indicate liquidity concerns
- Extremely high ROE likely distorted, signaling caution
- Unfavorable PE and PB ratios reflect valuation risks
Acme United Corporation Weaknesses
- Lower profitability with 5.15% net margin and 9.37% ROE
- Higher current ratio but potential liquidity risk
- Neutral dividend yield suggests limited income return
Colgate-Palmolive shows commanding profitability and efficient capital use but faces liquidity and leverage challenges. Acme United maintains strong balance sheet metrics and valuation but lags in profitability. Each company’s financial profile implies distinct strategic priorities in managing growth and risk.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only true shield protecting long-term profits from relentless competition erosion. Let’s dissect how these companies defend their turf:
Colgate-Palmolive Company: Intangible Asset Moat
Colgate leverages powerful brand recognition and product innovation. Its 25.6% ROIC above WACC proves efficient capital use and stable margins. New product lines and pet nutrition could deepen this moat in 2026.
Acme United Corporation: Cost Advantage Moat
Acme’s moat relies on cost-efficient manufacturing and niche product specialization. Unlike Colgate, its ROIC barely surpasses WACC, signaling weaker value creation. Expansion into new markets might stabilize margins but faces margin pressure risks.
Brand Equity vs. Cost Efficiency: The Moat Showdown
Colgate’s wider, durable moat outperforms Acme’s fragile cost advantage. Its superior ROIC growth and brand power better defend market share against competitors in 2026.
Which stock offers better returns?
The past year reveals distinct bullish trends for both stocks, with Colgate-Palmolive accelerating sharply since late 2025, while Acme United shows steady gains amid declining volume.
Trend Comparison
Colgate-Palmolive’s stock rose 2.52% over 12 months, showing a bullish trend with accelerating momentum and a high volatility of 7.34%. The recent period advanced 15.68%, confirming strong upward movement.
Acme United gained 5.21% over the same period, also bullish with acceleration but lower volatility at 2.76%. Recent gains of 13.34% reflect persistent strength, despite declining overall volume.
Colgate-Palmolive and Acme United both display bullish acceleration, yet Colgate’s recent sharper rise and higher volume suggest it delivered the stronger market performance.
Target Prices
Colgate-Palmolive Company shows a clear analyst consensus with a moderate upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Colgate-Palmolive Company | 83 | 96 | 88.67 |
Analysts expect Colgate-Palmolive’s stock to trade slightly below the current price of 90.29, suggesting limited near-term upside. No verified target price data is available for Acme United Corporation.
Don’t Let Luck Decide Your Entry Point
Optimize your entry points with our advanced ProRealTime indicators. You’ll get efficient buy signals with precise price targets for maximum performance. Start outperforming now!
How do institutions grade them?
The following summarizes recent institutional grades for Colgate-Palmolive Company and Acme United Corporation:
Colgate-Palmolive Company Grades
This table shows recent grades from major financial institutions for Colgate-Palmolive Company.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | maintain | Overweight | 2026-01-16 |
| UBS | maintain | Buy | 2026-01-14 |
| Wells Fargo | upgrade | Equal Weight | 2026-01-13 |
| TD Cowen | maintain | Buy | 2026-01-08 |
| Piper Sandler | upgrade | Overweight | 2026-01-07 |
| JP Morgan | maintain | Overweight | 2025-12-18 |
| Argus Research | downgrade | Hold | 2025-12-11 |
| RBC Capital | upgrade | Outperform | 2025-12-09 |
| Barclays | maintain | Equal Weight | 2025-11-04 |
| Evercore ISI Group | maintain | Outperform | 2025-11-03 |
Acme United Corporation Grades
This table shows recent grades from financial institutions for Acme United Corporation.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | maintain | Buy | 2016-07-01 |
Which company has the best grades?
Colgate-Palmolive has multiple recent grades with predominantly positive outlooks, including upgrades to Overweight and Outperform. Acme United’s only available grade is a decade old. Investors may view Colgate-Palmolive’s fresh and frequent assessments as stronger validation signals.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Colgate-Palmolive Company
- Faces intense competition in global consumer products; must innovate to maintain brand leadership.
Acme United Corporation
- Serves niche markets with specialized products but faces competition from larger diversified suppliers.
2. Capital Structure & Debt
Colgate-Palmolive Company
- High debt-to-assets ratio (53%) signals leverage risk despite strong interest coverage.
Acme United Corporation
- Low debt (20% debt-to-assets) implies conservative capital structure and lower financial risk.
3. Stock Volatility
Colgate-Palmolive Company
- Beta at 0.30 indicates low sensitivity to market swings, appealing for risk-averse investors.
Acme United Corporation
- Higher beta of 0.74 suggests moderate volatility, increasing trading risk.
4. Regulatory & Legal
Colgate-Palmolive Company
- Global presence exposes it to complex regulatory environments and compliance costs.
Acme United Corporation
- Smaller scale limits regulatory exposure but less diversified legal risk.
5. Supply Chain & Operations
Colgate-Palmolive Company
- Large, complex supply chains vulnerable to disruption and inflationary pressures.
Acme United Corporation
- More agile operations but dependent on key suppliers; less scale to absorb shocks.
6. ESG & Climate Transition
Colgate-Palmolive Company
- Increasing ESG demands pressure investments in sustainable packaging and emissions reduction.
Acme United Corporation
- ESG initiatives less visible; potential risk of falling behind industry standards.
7. Geopolitical Exposure
Colgate-Palmolive Company
- Significant global footprint exposes it to currency and geopolitical tensions.
Acme United Corporation
- Primarily North American focus reduces geopolitical risk but limits growth avenues.
Which company shows a better risk-adjusted profile?
Colgate-Palmolive’s biggest risk is its elevated leverage, which increases financial vulnerability despite operational scale. Acme United’s main risk lies in its moderate stock volatility and limited global diversification. I find Acme United exhibits a cleaner balance sheet and stronger Piotroski score, suggesting better financial health. However, Colgate’s low beta and robust cash flows provide defensive qualities. Overall, Acme United shows a better risk-adjusted profile given its conservative capital structure and strong operational metrics.
Final Verdict: Which stock to choose?
Colgate-Palmolive’s superpower lies in its durable competitive advantage and strong value creation, evidenced by a growing ROIC well above its cost of capital. Its point of vigilance is a stretched balance sheet, which could pressure short-term liquidity. It suits portfolios focused on steady, long-term value with moderate risk tolerance.
Acme United’s strategic moat is its conservative financial structure paired with a modest valuation, offering a margin of safety through low debt and reasonable multiples. Relative to Colgate, it presents a more stable liquidity profile but lacks the robust profitability growth. It fits portfolios targeting GARP—growth at a reasonable price with a defensive tilt.
If you prioritize durable economic moats and superior capital efficiency, Colgate-Palmolive outshines due to its proven value creation and growth momentum. However, if you seek better balance sheet strength and valuation comfort, Acme United offers better stability and a lower-risk footprint. Each appeals to distinct investor archetypes balancing growth and prudence.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Colgate-Palmolive Company and Acme United Corporation to enhance your investment decisions:
