Home > Comparison > Consumer Defensive > CL vs EPC
The strategic rivalry between Colgate-Palmolive Company and Edgewell Personal Care Company shapes the competitive landscape of the household and personal products sector. Colgate-Palmolive operates a diversified, scale-driven consumer defensive giant, while Edgewell Personal Care focuses on niche personal care segments with a leaner operational model. This head-to-head reflects a battle between broad-based market dominance and targeted growth strategies. This analysis aims to identify which trajectory offers superior risk-adjusted returns for a diversified portfolio.
Table of contents
Companies Overview
Colgate-Palmolive and Edgewell Personal Care stand as key players in the global personal care market.
Colgate-Palmolive Company: Global Consumer Products Powerhouse
Colgate-Palmolive dominates the household and personal products sector with a diversified portfolio. It generates revenue primarily through oral, personal, home care, and pet nutrition products. In 2026, the company focuses strategically on expanding eCommerce channels and innovating in oral health and pet nutrition to sustain its competitive advantage.
Edgewell Personal Care Company: Specialty Personal Care Innovator
Edgewell Personal Care specializes in personal care with a focus on wet shave, sun and skin care, and feminine care segments. Its revenue stems from established brands like Schick and Banana Boat. The company’s 2026 strategy centers on product innovation and brand revitalization to capture niche market segments and enhance consumer loyalty.
Strategic Collision: Similarities & Divergences
Both companies compete within the consumer defensive sector but differ in scale and scope. Colgate-Palmolive runs a broad, diversified portfolio including pet nutrition, while Edgewell targets specialized personal care categories. The primary battleground lies in brand differentiation and innovation. Their distinct investment profiles reflect a contrast between Colgate’s stability and scale versus Edgewell’s agility and niche focus.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Colgate-Palmolive Company (CL) | Edgewell Personal Care Company (EPC) |
|---|---|---|
| Revenue | 20.4B | 2.22B |
| Cost of Revenue | 8.13B | 1.30B |
| Operating Expenses | 7.90B | 828M |
| Gross Profit | 12.3B | 925M |
| EBITDA | 3.96B | 186M |
| EBIT | 3.33B | 97M |
| Interest Expense | 267M | 73M |
| Net Income | 2.13B | 25.4M |
| EPS | 2.64 | 0.53 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company’s financial engine runs more efficiently through revenue, margins, and profit trends.
Colgate-Palmolive Company Analysis
Colgate’s revenue grew steadily from 17.4B in 2021 to 20.4B in 2025, showing 17% overall growth despite a mild 1.4% dip last year. Gross margin remains robust around 60%, and net margin holds at a solid 10.5%. However, net income slipped 1.6% over five years, with a 27% decline in net margin last year, signaling recent margin pressure.
Edgewell Personal Care Company Analysis
Edgewell’s revenue hovers near 2.2B, showing modest 6.5% growth from 2021 to 2025 but with a 1.3% drop last year. Gross margin of 41.6% is decent though much lower than Colgate’s, while net margin at 1.1% is thin. Net income collapsed by 78% over five years, with last year’s net margin plunging almost 74%, reflecting severe profitability challenges.
Margin Strength vs. Profit Sustainability
Colgate outperforms Edgewell with superior margins and stronger revenue growth, despite recent profit margin contractions. Edgewell’s sharp net income decline and razor-thin net margin highlight fundamental earnings weakness. Colgate’s profile appeals more to investors prioritizing stable profitability and resilient operational efficiency.
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) | Edgewell Personal Care Company (EPC) |
|---|---|---|
| ROE | 13.63% | 1.64% |
| ROIC | 30.56% | 3.00% |
| P/E | 25.73 | 38.07 |
| P/B | 350.65 | 0.62 |
| Current Ratio | 0.92 | 1.76 |
| Quick Ratio | 0.58 | 0.90 |
| D/E | 40.15 | 0.91 |
| Debt-to-Assets | 53.05% | 37.61% |
| Interest Coverage | 15.01 | 1.32 |
| Asset Turnover | 1.25 | 0.59 |
| Fixed Asset Turnover | 4.55 | 6.02 |
| Payout ratio | 61.92% | 115.35% |
| Dividend yield | 2.41% | 3.03% |
| Fiscal Year | 2024 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, unveiling hidden risks and operational strengths that shape investor confidence and strategy.
Colgate-Palmolive Company
Colgate exhibits strong profitability with a robust ROE of 13.6% and a net margin of 14.4%, signaling efficient core operations. Its valuation appears stretched, reflected in a high P/E of 25.7 and an elevated P/B of 350.7. The company rewards shareholders with a 2.4% dividend yield, balancing income with steady reinvestment in growth.
Edgewell Personal Care Company
Edgewell’s profitability lags with a low ROE of 1.6% and a slim net margin of 1.1%, indicating operational challenges. Despite a higher P/E of 38.1, its P/B ratio at 0.62 suggests undervaluation. The firm maintains a 3.0% dividend yield, providing income while its reinvestment focuses on R&D to improve returns.
Premium Valuation vs. Operational Safety
Colgate offers superior operational efficiency and a favorable return profile but trades at a premium valuation. Edgewell’s valuation appears more attractive, yet its weak profitability and coverage ratios raise risks. Investors seeking stability may prefer Colgate, while those targeting yield and turnaround potential might consider Edgewell’s profile.
Which one offers the Superior Shareholder Reward?
I observe Colgate-Palmolive (CL) delivers a balanced shareholder reward via a 2.4% dividend yield and a 62% payout ratio, backed by strong free cash flow coverage (~86%). Its modest buybacks complement dividends sustainably. Edgewell Personal Care (EPC) offers a higher 3.0% yield but with a payout ratio exceeding 100%, signaling less sustainable dividends. EPC’s weaker free cash flow conversion (~35–75%) and lower operating margins limit buyback capacity. Historically, CL’s disciplined capital allocation and consistent cash generation provide a more reliable total return profile. I conclude CL offers the superior shareholder reward in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Colgate-Palmolive Company and Edgewell Personal Care Company:
Colgate dominates in return on equity (5 vs. 2) and return on assets (5 vs. 2), showcasing operational efficiency. Edgewell excels in discounted cash flow (5 vs. 4) and price-to-book valuation (4 vs. 1), indicating potential undervaluation. Colgate’s debt-to-equity score is weak (1 vs. 2), signaling higher leverage risk. Overall, Colgate shows a more balanced profile, while Edgewell relies on valuation metrics over profitability.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Score gap highlights diverging solvency profiles:
Colgate’s strong 6.75 score places it safely above distress, signaling robust long-term survival. Edgewell’s 1.46 score falls in the distress zone, raising red flags about financial stability amid economic cycles.
Financial Health: Quality of Operations
Piotroski F-Scores reveal operational health and risk levels:
Both firms score 6, indicating average financial health. Neither exhibits acute red flags, but this middling score advises caution and close monitoring of internal metrics.
How are the two companies positioned?
This section dissects the operational DNA of Colgate-Palmolive and Edgewell by comparing their revenue distribution and internal dynamics. The objective is to confront their economic moats to reveal which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Colgate-Palmolive Company and Edgewell Personal Care Company diversify their income streams and where their primary sector bets lie:
Colgate-Palmolive anchors revenue heavily in Oral, Personal and Home Care with $15.6B in 2024, supported by a smaller $4.5B Pet Nutrition segment. Edgewell shows a more fragmented mix, with Razors and Blades dominating at $1.1B, but multiple mid-sized streams like Sun Care ($459M) and Feminine Care ($262M) contribute. Colgate’s focus drives ecosystem lock-in and scale advantages, while Edgewell balances diversification with moderate concentration risk in shaving products.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Colgate-Palmolive Company and Edgewell Personal Care Company:
Colgate-Palmolive Company Strengths
- Strong profitability with 14.37% net margin
- High ROE at 1362.74% and ROIC at 30.56%
- Favorable WACC at 4.89%
- High asset and fixed asset turnover ratios
- Solid dividend yield of 2.41%
Edgewell Personal Care Company Strengths
- Favorable current ratio at 1.76 indicates liquidity strength
- Low price-to-book ratio at 0.62 suggests undervaluation
- Favorable fixed asset turnover of 6.02
- Dividend yield higher than CL at 3.03%
- Balanced geographic revenue split between US and Non-US markets
Colgate-Palmolive Company Weaknesses
- Unfavorable high price-to-earnings at 25.73 and price-to-book at 350.65
- Low current and quick ratios signal liquidity risk
- High debt-to-equity (40.15) and debt-to-assets (53.05%) ratios
- Interest coverage though favorable (12.46), less than ideal leverage profile
Edgewell Personal Care Company Weaknesses
- Unfavorable margins with net margin at 1.14% and ROE at 1.64%
- Low ROIC at 3.0% below WACC
- Unfavorable interest coverage ratio at 1.32
- Moderate asset turnover and neutral debt ratios
- Smaller scale and narrower product diversification
Colgate-Palmolive’s strengths lie in robust profitability and efficient asset use but face liquidity and valuation challenges. Edgewell shows better liquidity and asset utilization but struggles with profitability and financial leverage. These contrasts highlight differing strategic priorities and risk profiles.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable barrier safeguarding long-term profits from relentless competition erosion. Let’s examine how these two companies defend their turf:
Colgate-Palmolive Company: Durable Brand and Cost Advantage
Colgate leverages a powerful brand moat combined with cost advantages, reflected in a robust 25.7% ROIC above WACC. Despite recent margin pressure, its expanding product lines and global reach reinforce this moat into 2026.
Edgewell Personal Care Company: Narrow Market Niche with Weakening Returns
Edgewell’s moat rests on niche brand positioning in wet shave and skin care, but it suffers from a declining ROIC and margin compression. Its weaker financial defensibility contrasts sharply with Colgate’s, though targeted innovation may offer limited upside.
Verdict: Brand Strength vs. Niche Focus Under Pressure
Colgate’s wider and more durable moat, evidenced by strong ROIC and brand equity, far outmatches Edgewell’s eroding competitive edge. Colgate stands better poised to protect and grow market share in an intensifying consumer products sector.
Which stock offers better returns?
The past year shows contrasting price dynamics: Colgate-Palmolive (CL) gained 2.52% with accelerating momentum, while Edgewell Personal Care (EPC) fell sharply by 49.39%, despite a recent partial rebound.
Trend Comparison
Colgate-Palmolive’s stock rose 2.52% over 12 months, signaling a bullish trend with accelerating gains and a high near 108. Volatility remains moderate at 7.34%.
Edgewell Personal Care declined 49.39% over the same period, a clear bearish trend with accelerating losses and a low near 17. Recent partial recovery of 7.34% shows deceleration and lower volatility.
Comparing both, Colgate-Palmolive delivered superior market performance over the year, showing resilience versus Edgewell’s steep decline.
Target Prices
Analysts present a clear consensus on target prices for Colgate-Palmolive Company and Edgewell Personal Care Company.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Colgate-Palmolive Company | 83 | 96 | 89.2 |
| Edgewell Personal Care Company | 20 | 23 | 21.5 |
Colgate-Palmolive’s consensus target of 89.2 slightly lags its current price of 90.29, signaling cautious optimism. Edgewell’s 21.5 target well exceeds its 19.46 market price, indicating upside potential.
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How do institutions grade them?
The following section compares recent grades assigned by reputable financial institutions for both companies:
Colgate-Palmolive Company Grades
Here are the latest grades and rating actions from key 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 |
| Citigroup | Maintain | Buy | 2025-11-03 |
Edgewell Personal Care Company Grades
Below are recent grades and rating actions from reliable institutions for Edgewell Personal Care Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2026-01-05 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-18 |
| Barclays | Maintain | Equal Weight | 2025-11-14 |
| Wells Fargo | Maintain | Overweight | 2025-11-14 |
| RBC Capital | Maintain | Outperform | 2025-11-14 |
| Wells Fargo | Maintain | Overweight | 2025-09-25 |
| Canaccord Genuity | Maintain | Buy | 2025-08-06 |
| Morgan Stanley | Upgrade | Equal Weight | 2025-08-06 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Barclays | Maintain | Equal Weight | 2025-08-06 |
Which company has the best grades?
Colgate-Palmolive consistently receives higher grades, including multiple Overweight and Buy ratings, plus recent upgrades. Edgewell’s grades cluster around Equal Weight and Overweight. Investors may view Colgate-Palmolive’s stronger consensus as a signal of comparatively higher confidence.
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
- Dominates consumer products with strong brand portfolio and global reach, but faces intense competition in oral and personal care.
Edgewell Personal Care Company
- Competes in niche segments like wet shave and feminine care, struggling to grow market share against larger incumbents.
2. Capital Structure & Debt
Colgate-Palmolive Company
- High debt-to-assets ratio (53%) and D/E of 40.15 signal leverage risk despite strong interest coverage.
Edgewell Personal Care Company
- Moderate debt metrics (D/E ~0.91) and lower leverage reduce financial strain, yet interest coverage is weak at 1.32.
3. Stock Volatility
Colgate-Palmolive Company
- Low beta (0.28) indicates stable stock less sensitive to market swings, attractive for conservative investors.
Edgewell Personal Care Company
- Higher beta (0.62) implies more volatile price movements, increasing risk but potential for higher returns.
4. Regulatory & Legal
Colgate-Palmolive Company
- Faces regulatory scrutiny in global consumer products, particularly in ingredient safety and environmental compliance.
Edgewell Personal Care Company
- Exposed to regulatory risks in personal care and hygiene product standards, with potential litigation in competitive segments.
5. Supply Chain & Operations
Colgate-Palmolive Company
- Benefits from diversified global supply chain but vulnerable to raw material price inflation and logistics disruptions.
Edgewell Personal Care Company
- Smaller scale supply chain more sensitive to cost shocks and operational inefficiencies, limiting margin expansion.
6. ESG & Climate Transition
Colgate-Palmolive Company
- Increasing pressure to reduce carbon footprint and plastic packaging; strong ESG programs underway but risk of investor scrutiny remains.
Edgewell Personal Care Company
- ESG initiatives less mature, exposing company to reputational risk and potential regulatory penalties amid climate transition demands.
7. Geopolitical Exposure
Colgate-Palmolive Company
- Broad global footprint entails exposure to currency fluctuations, trade tensions, and regional instability.
Edgewell Personal Care Company
- More concentrated operations in North America reduce geopolitical risks but limit growth opportunities abroad.
Which company shows a better risk-adjusted profile?
Colgate-Palmolive faces significant leverage and regulatory pressures but benefits from strong market position and financial stability. Edgewell struggles with profitability, weaker interest coverage, and higher stock volatility, despite lower leverage. The Altman Z-score signals Colgate is in a safe zone, while Edgewell is in distress. Thus, Colgate offers a superior risk-adjusted profile in 2026.
Final Verdict: Which stock to choose?
Colgate-Palmolive’s superpower lies in its durable competitive advantage and consistent value creation, reflected by a robust ROIC well above its cost of capital. Its main point of vigilance is a stretched balance sheet with below-par liquidity metrics. This stock suits investors targeting steady, defensive income with moderate growth potential.
Edgewell Personal Care’s strategic moat hinges on niche brand positioning and a lean asset structure that supports decent operational efficiency. It offers a comparatively safer liquidity profile but struggles with declining profitability and value destruction. This stock might appeal to risk-tolerant investors seeking turnaround opportunities or deep-value plays.
If you prioritize long-term value creation and capital efficiency, Colgate-Palmolive outshines with its proven moat and income stability. However, if you seek speculative growth with potential undervaluation, Edgewell could offer upside despite its financial headwinds. Both scenarios require careful risk management given their distinct profiles.
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 Edgewell Personal Care Company to enhance your investment decisions:
