Home > Comparison > Consumer Defensive > CL vs HELE
The strategic rivalry between Colgate-Palmolive Company and Helen of Troy Limited shapes the competitive landscape of the consumer defensive sector. Colgate-Palmolive operates as a market-leading household and personal products manufacturer with diversified global reach. Helen of Troy focuses on niche consumer products across health, wellness, and beauty segments, emphasizing innovation and agility. This analysis will clarify which business model delivers superior risk-adjusted returns for a diversified portfolio amid evolving market dynamics.
Table of contents
Companies Overview
Colgate-Palmolive and Helen of Troy are major players in the global household and personal products market.
Colgate-Palmolive Company: Global Consumer Products Leader
Colgate-Palmolive dominates through its diversified portfolio spanning oral, personal, home care, and pet nutrition products. Its core revenue engine is branded consumer goods sold to retailers and e-commerce platforms worldwide. In 2026, the company focuses on expanding its pet nutrition segment while maintaining leadership in oral care.
Helen of Troy Limited: Innovative Home & Wellness Specialist
Helen of Troy drives growth with a multi-segment approach across home & outdoor, health & wellness, and beauty categories. It generates revenue by selling branded consumer products through mass merchandisers and specialty retailers. The 2026 strategy centers on broadening product innovation within health and beauty segments to capture evolving consumer trends.
Strategic Collision: Similarities & Divergences
Both companies operate in consumer defensive sectors but differ significantly in scale and scope. Colgate-Palmolive pursues a broad global footprint and brand depth, while Helen of Troy focuses on niche innovation across diverse lifestyle categories. Their primary battleground is consumer engagement through brand differentiation. These distinct profiles appeal to investors valuing either stable global dominance or growth-oriented niche specialization.
Income Statement Comparison
This table dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Colgate-Palmolive Company (CL) | Helen of Troy Limited (HELE) |
|---|---|---|
| Revenue | 20.38B | 1.91B |
| Cost of Revenue | 8.13B | 993M |
| Operating Expenses | 7.90B | 772M |
| Gross Profit | 12.25B | 914M |
| EBITDA | 3.96B | 269M |
| EBIT | 3.33B | 214M |
| Interest Expense | 267M | 52M |
| Net Income | 2.13B | 124M |
| EPS | 2.64 | 5.38 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates its corporate engine with greater efficiency and sustained profitability.
Colgate-Palmolive Company Analysis
Colgate’s revenue grew steadily from $17.4B in 2021 to $20.4B in 2025, demonstrating consistent top-line expansion. Net income, however, declined from $2.17B in 2021 to $2.13B in 2025, reflecting margin pressure. Its gross margin remains robust at 60.1%, but net margin dropped to 10.5%. The 2025 earnings showed a sharp 27% net margin contraction and a 22% EBIT decline, signaling recent operational challenges.
Helen of Troy Limited Analysis
Helen of Troy’s revenue decreased from $2.1B in 2021 to $1.9B in 2025, with net income halving from $254M to $124M. The company’s gross margin slipped below 48%, and net margin fell to 6.5%, indicating deteriorating profitability. The latest year saw a 23.6% EPS decline and a 14.5% EBIT drop, underscoring weakening momentum and less effective cost control.
Margin Strength vs. Revenue Resilience
Colgate outperforms Helen of Troy with larger scale and stronger margins despite recent profit setbacks. Colgate’s gross margin above 60% and double-digit net margin remain industry advantages. Helen of Troy faces sharper declines in both revenue and profitability. For investors, Colgate’s profile offers more resilience and margin power, while Helen of Troy’s shrinking earnings highlight higher risk.
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) | Helen of Troy Limited (HELE) |
|---|---|---|
| ROE | 13.63% | 7.35% |
| ROIC | 30.56% | 5.34% |
| P/E | 25.73 | 10.25 |
| P/B | 350.65 | 0.75 |
| Current Ratio | 0.92 | 2.00 |
| Quick Ratio | 0.58 | 1.03 |
| D/E (Debt-to-Equity) | 40.15 | 0.57 |
| Debt-to-Assets | 53.05% | 30.55% |
| Interest Coverage | 15.01 | 2.75 |
| Asset Turnover | 1.25 | 0.61 |
| Fixed Asset Turnover | 4.55 | 5.23 |
| Payout ratio | 61.92% | 0% |
| Dividend yield | 2.41% | 0% |
| Fiscal Year | 2024 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, exposing hidden risks and operational strengths through numbers that guide investment decisions.
Colgate-Palmolive Company
Colgate-Palmolive shows strong profitability with a 13.6% ROE and a solid 14.37% net margin, signaling operational efficiency. However, its valuation feels stretched, with a P/E of 25.73 and a high P/B of 350.65. The company supports shareholders with a 2.41% dividend yield, reflecting steady capital return.
Helen of Troy Limited
Helen of Troy delivers modest profitability, posting a 7.35% ROE and a 6.49% net margin, indicating moderate operational performance. Its valuation appears attractive, trading at a P/E of 10.25 and a P/B of 0.75, suggesting undervaluation. The company does not pay dividends, likely reinvesting in growth and R&D initiatives.
Valuation Stretch vs. Operational Efficiency
Colgate-Palmolive excels in profitability and shareholder returns but trades at a premium with some liquidity concerns. Helen of Troy offers better valuation and balance sheet strength but lags on profitability and dividends. Investors seeking stable income might prefer Colgate; those prioritizing value and growth may lean toward Helen of Troy.
Which one offers the Superior Shareholder Reward?
I compare Colgate-Palmolive (CL) and Helen of Troy (HELE) on dividends, buybacks, and sustainability. CL yields ~2.4%, with a 62% payout ratio, well-covered by free cash flow (FCF). It also executes moderate buybacks, balancing income and capital return. HELE pays no dividends, reinvesting heavily in growth (R&D, capex) and share repurchases, though with a lower free cash flow conversion in recent years. CL’s mature, consistent distribution suits income-focused investors. HELE’s aggressive reinvestment targets higher growth but carries more execution risk. For 2026, I favor CL’s sustainable, balanced shareholder rewards and lower leverage for more reliable total returns.
Comparative Score Analysis: The Strategic Profile
This radar chart reveals the fundamental DNA and trade-offs of Colgate-Palmolive Company and Helen of Troy Limited:
Colgate-Palmolive shows strength in ROE (5) and ROA (5), signaling efficient profit and asset use. Helen of Troy excels in discounted cash flow (5) and price-to-book (5), reflecting strong valuation appeal but suffers weak ROE (1) and ROA (1). Colgate has a more balanced profile, though it carries high debt risk (debt/equity score 1). Helen of Troy relies heavily on valuation metrics, masking operational weaknesses.
Bankruptcy Risk: Solvency Showdown
Colgate’s Altman Z-score of 6.75 places it securely in the safe zone, while Helen of Troy’s 1.08 signals distress risk. This gap warns that Helen faces a high bankruptcy risk in current market conditions:
Financial Health: Quality of Operations
Colgate’s Piotroski F-score of 6 indicates average financial health, outperforming Helen of Troy’s weak 3. This suggests Colgate maintains stronger internal metrics and fewer red flags:
How are the two companies positioned?
This section dissects the operational DNA of Colgate-Palmolive and Helen of Troy by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats to identify which offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Colgate-Palmolive and Helen of Troy diversify income streams and where their primary sector bets lie:
Colgate-Palmolive anchors revenue in Oral, Personal and Home Care with $15.6B, complemented by a $4.5B Pet Nutrition segment. Helen of Troy shows a more balanced split between Beauty & Wellness ($1.0B) and Home & Outdoor ($906M). Colgate’s concentration signals strong ecosystem lock-in but exposes it to category-specific risks. Helen of Troy’s diversified revenue mix mitigates concentration risk, enhancing resilience amid market shifts.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Colgate-Palmolive Company and Helen of Troy Limited:
Colgate-Palmolive Company Strengths
- Strong profitability with a 14.37% net margin and 30.56% ROIC
- High return on equity at 1362.74%
- Favorable interest coverage at 12.46
- High asset and fixed asset turnover ratios
- Solid dividend yield of 2.41%
Helen of Troy Limited Strengths
- Favorable price-to-earnings and price-to-book ratios
- Strong liquidity with current ratio at 2.0 and quick ratio at 1.03
- Favorable WACC at 5.58%
- High fixed asset turnover at 5.23
- Diverse product segments including Beauty & Wellness and Home & Outdoor
Colgate-Palmolive Company Weaknesses
- Low liquidity shown by current ratio (0.92) and quick ratio (0.58)
- High debt-to-equity (40.15) and debt-to-assets (53.05%) ratios
- Unfavorable valuation metrics (PE 25.73, PB 350.65)
Helen of Troy Limited Weaknesses
- Lower profitability with 6.49% net margin and 7.35% ROE
- Neutral interest coverage at 4.11
- No dividend yield
- Moderate debt levels with neutral debt ratios
- Asset turnover at 0.61 indicates less efficient asset use
Colgate-Palmolive demonstrates strong profitability and operational efficiency but faces liquidity and valuation challenges. Helen of Troy shows solid liquidity and valuation metrics but struggles with profitability and dividend generation. These contrasts could influence each company’s strategic focus on financial health and growth.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat protects long-term profits from competition’s erosion. Without it, sustainable earnings quickly vanish:
Colgate-Palmolive Company: Durable Brand Power and Efficient Capital Use
Colgate commands a switching-cost moat through trusted brands and broad distribution. Its ROIC outpaces WACC by 25.7%, reflecting strong value creation and margin stability. New product launches and pet nutrition expansion could deepen this moat in 2026.
Helen of Troy Limited: Fragmented Product Portfolio and Weakened Capital Efficiency
Helen of Troy relies on diverse product lines but lacks Colgate’s brand depth. Its ROIC trails WACC, signaling value destruction and declining profitability. Expansion into health and outdoor markets may help, but risks remain high amid shrinking margins.
Wide Moat Brand Equity vs. Fragmented Product Strategy
Colgate’s wide, durable moat outclasses Helen of Troy’s eroding competitive position. I see Colgate better equipped to defend market share and sustain profits in a competitive landscape.
Which stock offers better returns?
Over the past year, Colgate-Palmolive Company’s stock showed steady gains with accelerating momentum, while Helen of Troy Limited experienced a sharp decline amid heightened volatility and sustained selling pressure.
Trend Comparison
Colgate-Palmolive’s stock rose 2.52% over 12 months, marking a bullish trend with accelerating gains and moderate volatility. The price ranged between 77.05 and 107.86, peaking near the end.
Helen of Troy’s stock fell 86.68% in the same period, reflecting a bearish trend with accelerating decline and very high volatility. The price dropped from a high of 124.36 to a low of 16.56.
Comparatively, Colgate-Palmolive delivered significantly stronger market performance, maintaining upward momentum versus Helen of Troy’s steep and accelerating losses.
Target Prices
Analysts present a clear consensus on target prices for both Colgate-Palmolive Company and Helen of Troy Limited.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Colgate-Palmolive Company | 83 | 96 | 89.2 |
| Helen of Troy Limited | 22 | 22 | 22 |
Colgate-Palmolive’s consensus target of 89.2 sits just below its current price of 90.29, indicating modest downside risk. Helen of Troy’s target at 22 suggests a significant upside from its current 16.56, reflecting optimistic analyst expectations.
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How do institutions grade them?
The following tables summarize recent institutional grading actions for Colgate-Palmolive Company and Helen of Troy Limited:
Colgate-Palmolive Company Grades
This table lists recent grade changes and actions from major financial institutions for Colgate-Palmolive.
| 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 |
Helen of Troy Limited Grades
This table shows recent institutional grading actions for Helen of Troy Limited.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Canaccord Genuity | Maintain | Hold | 2026-01-09 |
| UBS | Maintain | Neutral | 2026-01-09 |
| Canaccord Genuity | Maintain | Hold | 2026-01-06 |
| Canaccord Genuity | Maintain | Hold | 2025-10-10 |
| UBS | Maintain | Neutral | 2025-10-10 |
| UBS | Maintain | Neutral | 2025-10-02 |
| UBS | Maintain | Neutral | 2025-07-11 |
| Canaccord Genuity | Downgrade | Hold | 2025-07-11 |
| Canaccord Genuity | Maintain | Buy | 2025-07-07 |
| Canaccord Genuity | Maintain | Buy | 2025-04-25 |
Which company has the best grades?
Colgate-Palmolive consistently receives higher grades, including multiple “Buy,” “Overweight,” and “Outperform” ratings. Helen of Troy mostly holds “Hold” or “Neutral” grades with fewer upgrades. Investors might view Colgate-Palmolive as the institutionally favored option based on these gradings.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Colgate-Palmolive Company
- Established global brand with strong household product moats but faces intense FMCG competition and pricing pressures.
Helen of Troy Limited
- Smaller scale with niche segment exposure; vulnerable to competitive innovation and market share erosion.
2. Capital Structure & Debt
Colgate-Palmolive Company
- High debt-to-assets (53%) and debt/equity ratio (40.15) pose leverage concerns despite strong interest coverage (12.46x).
Helen of Troy Limited
- Moderate debt metrics with debt-to-assets at 30.55%, balanced by neutral interest coverage (4.11x).
3. Stock Volatility
Colgate-Palmolive Company
- Low beta (~0.28) reflects defensive stock behavior and stability during market swings.
Helen of Troy Limited
- Higher beta (~0.78) signals elevated volatility and sensitivity to market fluctuations.
4. Regulatory & Legal
Colgate-Palmolive Company
- Global operations expose CL to diverse regulatory regimes, especially in consumer safety and environmental laws.
Helen of Troy Limited
- Multi-region presence entails complex compliance, but smaller size may reduce regulatory burden.
5. Supply Chain & Operations
Colgate-Palmolive Company
- Extensive global supply chain risks include cost inflation and raw material volatility but benefits from scale economies.
Helen of Troy Limited
- More concentrated supply chains increase vulnerability to disruptions and operational inefficiencies.
6. ESG & Climate Transition
Colgate-Palmolive Company
- Increasing ESG initiatives driven by investor and regulatory pressures; sustainability integration critical for brand value.
Helen of Troy Limited
- ESG efforts less mature; potential lag in climate transition strategies may affect long-term competitiveness.
7. Geopolitical Exposure
Colgate-Palmolive Company
- Exposure to geopolitical tensions in emerging markets could disrupt sales and supply chains.
Helen of Troy Limited
- Less diversified international footprint limits geopolitical risk but also growth opportunities.
Which company shows a better risk-adjusted profile?
Colgate-Palmolive’s primary risk stems from its heavy leverage and global supply chain complexity, but its strong brand and stable stock offset volatility. Helen of Troy faces higher stock volatility and weaker financial health, with distress-level bankruptcy risk indicated by its Altman Z-score. Overall, Colgate-Palmolive shows a more favorable risk-adjusted profile, supported by a high Altman Z-score (6.75) and solid operational metrics despite debt concerns.
Final Verdict: Which stock to choose?
Colgate-Palmolive’s superpower lies in its durable competitive advantage, demonstrated by a consistently high ROIC well above its cost of capital. It excels in generating solid returns and maintaining operational efficiency. A point of vigilance is its weaker liquidity position, which could pressure short-term flexibility. This stock fits well in portfolios focused on steady income and long-term value creation.
Helen of Troy’s strategic moat centers on niche product innovation and a leaner asset base, offering a lower valuation entry point. It provides relatively better liquidity and balance sheet safety compared to Colgate but struggles with declining profitability and value destruction. This stock might appeal to investors seeking contrarian value plays with moderate risk tolerance.
If you prioritize durable economic moats and reliable capital efficiency, Colgate-Palmolive outshines with greater stability and proven value creation. However, if you seek undervalued opportunities with potential for turnaround and can tolerate volatility, Helen of Troy offers a lower-risk profile on liquidity but carries significant profitability challenges.
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 Helen of Troy Limited to enhance your investment decisions:
