Home > Comparison > Consumer Defensive > CL vs KVUE
The strategic rivalry between Colgate-Palmolive Company and Kenvue Inc. shapes the consumer defensive sector’s competitive landscape. Colgate-Palmolive operates as a diversified household and personal products manufacturer with a global footprint. Kenvue, a younger consumer health company, focuses on self-care, skin health, and essential health segments. This analysis explores their contrasting operational models and competitive moats to identify which offers a superior risk-adjusted return for diversified portfolios.
Table of contents
Companies Overview
Colgate-Palmolive and Kenvue stand as pivotal players in the global household and personal products market.
Colgate-Palmolive Company: Household & Personal Care Pioneer
Colgate-Palmolive dominates the consumer defensive sector with a diverse portfolio spanning oral care, personal hygiene, and pet nutrition. Its core revenue stems from trusted brands like Colgate and Hill’s Science Diet. In 2026, it sharpens its strategic focus on expanding eCommerce channels while maintaining broad retail presence worldwide.
Kenvue Inc.: Consumer Health Innovator
Kenvue operates across self-care, skin health, and essential health products, generating revenue through brands such as Tylenol, Neutrogena, and Listerine. Since its 2023 spin-off, Kenvue emphasizes innovation in consumer health and beauty segments. It leverages its legacy as a Johnson & Johnson subsidiary to deepen market penetration in wellness.
Strategic Collision: Similarities & Divergences
Both companies compete primarily in the household and personal care space but diverge in approach. Colgate-Palmolive emphasizes a broad product mix including pet nutrition, while Kenvue focuses tightly on health and beauty innovation. Their battle for consumer loyalty plays out in retail and digital channels. Investors face distinct profiles: Colgate offers stable legacy strength, Kenvue pursues growth through focused health 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) | Kenvue Inc. (KVUE) |
|---|---|---|
| Revenue | 20.38B | 15.46B |
| Cost of Revenue | 8.13B | 6.50B |
| Operating Expenses | 7.90B | 7.12B |
| Gross Profit | 12.25B | 8.96B |
| EBITDA | 3.96B | 2.47B |
| EBIT | 3.33B | 1.85B |
| Interest Expense | 267M | 431M |
| Net Income | 2.13B | 1.03B |
| EPS | 2.64 | 0.54 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company manages its revenue and expenses with greater efficiency and sustainable profitability.
Colgate-Palmolive Company Analysis
Colgate-Palmolive’s revenue grew modestly to 20.4B in 2025, but net income declined to 2.13B, reflecting a shrinking net margin near 10.5%. Despite a solid 60% gross margin, earnings fell sharply due to a 21.7% EBIT drop and rising operating expenses, signaling weakening profitability momentum.
Kenvue Inc. Analysis
Kenvue’s revenue hovered around 15.5B in 2024 with net income at 1.03B, showing a leaner 6.7% net margin. The firm’s gross margin of 58% supports operational stability, but a 27.5% EBIT decline and falling EPS highlight recent profit pressure. However, net income has surged over the medium term, evidencing strong growth potential.
Margin Strength vs. Earnings Momentum
Colgate-Palmolive exhibits superior margin quality but suffers from recent profit contraction, while Kenvue shows lower margins yet impressive net income growth over time. Fundamentally, Colgate dominates on efficiency; Kenvue leads on growth trajectory. Investors seeking steady profitability may favor Colgate, whereas those prioritizing earnings momentum might lean toward Kenvue.
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) | Kenvue Inc. (KVUE) |
|---|---|---|
| ROE | 13.63% | 10.65% |
| ROIC | 30.56% | 6.25% |
| P/E | 25.73 | 39.38 |
| P/B | 350.65 | 4.20 |
| Current Ratio | 0.92 | 0.96 |
| Quick Ratio | 0.58 | 0.69 |
| D/E | 40.15 | 0.90 |
| Debt-to-Assets | 53.05% | 34.06% |
| Interest Coverage | 15.01 | 4.27 |
| Asset Turnover | 1.25 | 0.60 |
| Fixed Asset Turnover | 4.55 | 8.36 |
| Payout ratio | 61.92% | 150.68% |
| Dividend yield | 2.41% | 3.83% |
| Fiscal Year | 2024 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, unlocking insights on hidden risks and operational strength.
Colgate-Palmolive Company
Colgate-Palmolive demonstrates robust profitability with a 13.6% ROE and strong 14.4% net margin. Its valuation is stretched, marked by a high P/E of 25.7 and an elevated P/B of 350.7. The firm rewards shareholders with a 2.4% dividend yield, signaling stable income alongside reinvestment in efficient capital allocation.
Kenvue Inc.
Kenvue posts moderate profitability with a 10.7% ROE and a 6.7% net margin, indicating operational challenges. The stock appears expensive, trading at a P/E of 39.4 and P/B of 4.2. It offers a relatively attractive 3.8% dividend yield, balancing shareholder returns despite neutral efficiency metrics and higher leverage.
Premium Valuation vs. Operational Safety
Colgate-Palmolive offers superior operational efficiency and return on invested capital despite a stretched valuation. Kenvue’s higher dividend yield comes with lower profitability and more neutral financial health. Investors favoring stability and long-term growth may lean toward Colgate, while income-focused profiles might find Kenvue’s yield appealing.
Which one offers the Superior Shareholder Reward?
I compare Colgate-Palmolive (CL) and Kenvue (KVUE) through their dividend policies and buyback intensity. CL yields 2.4% with a 62% payout, supported by strong free cash flow (4.34/share). KVUE offers a higher 3.8% yield but an unsustainable 150% payout. CL’s steady buybacks complement dividends, while KVUE’s buybacks are modest. I see CL’s balanced, sustainable model as superior for long-term total returns in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and strategic trade-offs of Colgate-Palmolive and Kenvue Inc.:
Colgate-Palmolive excels in profitability with top ROE and ROA scores of 5, signaling superior efficiency. However, it carries high financial risk, evidenced by a very unfavorable debt-to-equity score of 1. Kenvue offers a more balanced financial profile with moderate leverage and valuation scores, though its profitability scores lag slightly. Thus, Colgate leans on operational strength, while Kenvue emphasizes financial stability.
Bankruptcy Risk: Solvency Showdown
Colgate’s Altman Z-Score of 6.75 places it firmly in the safe zone, signaling robust long-term survival. Kenvue’s score of 2.03 falls into the grey zone, indicating moderate bankruptcy risk in this market cycle:
Financial Health: Quality of Operations
Both firms display average Piotroski F-Scores—Colgate at 6, Kenvue at 5—indicating stable but not peak financial health. Neither shows immediate red flags, though Colgate’s slightly higher score suggests marginally better operational quality:
How are the two companies positioned?
This section dissects CL and KVUE’s operational DNA by comparing revenue distribution and internal dynamics: strengths and weaknesses. The goal is to confront their economic moats and identify the more resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Colgate-Palmolive and Kenvue diversify their income streams and where their primary sector bets lie:
Colgate-Palmolive anchors its revenue in Oral, Personal and Home Care with $15.6B, while Pet Nutrition contributes $4.5B, showing moderate diversification. Kenvue exhibits a more balanced mix across Self Care ($6.5B), Essential Health ($4.7B), and Skin Health and Beauty ($4.2B). Kenvue’s spread reduces concentration risk, whereas Colgate’s dominance in one segment suggests strong ecosystem lock-in but higher exposure to category shifts.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Colgate-Palmolive Company and Kenvue Inc.:
Colgate-Palmolive Strengths
- Strong profitability with 14.37% net margin
- Exceptional ROE at 1362.74%
- High ROIC of 30.56% surpasses WACC
- Diverse product segments including Oral Care and Pet Nutrition
- Favorable interest coverage and asset turnover
- Consistent dividend yield at 2.41%
Kenvue Strengths
- Diversified revenue streams across Essential Health, Self Care, Skin Health
- Global presence with significant sales in North America, EMEA, Asia Pacific, Latin America
- Favorable fixed asset turnover at 8.36
- Dividend yield of 3.83%
- WACC at 5.86% indicates efficient capital cost management
Colgate-Palmolive Weaknesses
- Unfavorable valuation metrics with high P/E and P/B ratios
- Current and quick ratios below 1 signal liquidity risk
- Elevated debt-to-assets ratio at 53.05%
- Debt-to-equity ratio high at 40.15
- Moderate asset turnover compared to sector benchmarks
- Some leverage concerns despite strong interest coverage
Kenvue Weaknesses
- Net margin and ROE remain neutral and comparatively low
- P/E and P/B ratios unfavorable indicating possible overvaluation
- Current and quick ratios below 1 imply liquidity pressures
- Neutral debt-to-equity and debt-to-assets ratios suggest moderate leverage
- Lower interest coverage at 4.28 may constrain financial flexibility
Colgate-Palmolive exhibits superior profitability and efficient capital use, but liquidity and valuation pressures warrant attention. Kenvue benefits from broad geographic diversification and asset efficiency but faces challenges in profitability and liquidity that could affect its strategic positioning.
The Moat Duel: Analyzing Competitive Defensibility
A durable structural moat is the only true shield preserving long-term profits from relentless competitive erosion in consumer goods companies:
Colgate-Palmolive Company: Trusted Brand with Wide Economic Moat
Colgate’s moat is rooted in its intangible assets—strong global brands and customer loyalty. This reflects in a high ROIC 26% above WACC and stable margins. New product innovations and pet nutrition expansion could deepen this moat in 2026.
Kenvue Inc.: Emerging Portfolio with Growth Potential
Kenvue’s moat relies on a diversified product portfolio and growing brand recognition but trails Colgate in ROIC, barely above WACC. Its rising profitability signals potential moat development, supported by expanding international reach and new health products.
Strong Brand Equity vs. Growth-Stage Diversification
Colgate commands a wider, more durable moat with clear value creation over time. Kenvue shows promise but remains slightly favorable, still building its competitive defenses. Colgate is better positioned to defend and extend market share in 2026.
Which stock offers better returns?
The past year shows divergent price dynamics: Colgate-Palmolive Company gained steadily with accelerating momentum, while Kenvue Inc. faced a pronounced decline despite recent slight recovery.
Trend Comparison
Colgate-Palmolive’s stock rose 2.52% over 12 months, marking a bullish trend with accelerating gains and a high volatility of 7.34%. It hit a peak of 107.86 and bottomed at 77.05.
Kenvue’s stock fell 13.09% over the same period, confirming a bearish trend with accelerating losses. Volatility remained moderate at 2.49%, with a high of 24.44 and a low of 14.37.
Colgate-Palmolive delivered the strongest market performance, outperforming Kenvue by nearly 16 percentage points, supported by dominant buyer activity and volume growth.
Target Prices
Analysts present a moderate target consensus for both Colgate-Palmolive and Kenvue, reflecting steady expectations.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Colgate-Palmolive Company | 83 | 96 | 89.2 |
| Kenvue Inc. | 15 | 22 | 17.86 |
Colgate-Palmolive’s consensus target sits slightly below its current price of 90.29, suggesting limited upside. Kenvue’s consensus target modestly exceeds its current price of 17.4, indicating cautious optimism from analysts.
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How do institutions grade them?
Here is the latest grading comparison for Colgate-Palmolive Company and Kenvue Inc.:
Colgate-Palmolive Company Grades
The table below shows recent institutional grades 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 |
Kenvue Inc. Grades
The table below shows recent institutional grades for Kenvue Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Jefferies | downgrade | Hold | 2026-01-30 |
| Barclays | maintain | Equal Weight | 2025-11-10 |
| Canaccord Genuity | downgrade | Hold | 2025-10-29 |
| Jefferies | maintain | Buy | 2025-10-27 |
| JP Morgan | maintain | Overweight | 2025-10-10 |
| Citigroup | maintain | Neutral | 2025-10-09 |
| UBS | maintain | Neutral | 2025-10-08 |
| B of A Securities | maintain | Buy | 2025-10-08 |
| Goldman Sachs | maintain | Neutral | 2025-10-02 |
| Barclays | maintain | Equal Weight | 2025-10-01 |
Which company has the best grades?
Colgate-Palmolive holds generally stronger and more positive grades, with multiple upgrades and Buy or Overweight ratings. Kenvue shows more Hold and Neutral grades, including recent downgrades. This suggests investors may perceive Colgate-Palmolive as having a more favorable outlook.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the complex 2026 market environment:
1. Market & Competition
Colgate-Palmolive Company
- Strong brand portfolio, but faces intense competition in oral and personal care markets.
Kenvue Inc.
- Newly independent, competing aggressively in consumer health with legacy Johnson & Johnson brands.
2. Capital Structure & Debt
Colgate-Palmolive Company
- High debt-to-equity ratio (40.15) and debt-to-assets (53.05%) raise leverage concerns.
Kenvue Inc.
- Moderate debt levels with debt-to-equity at 0.9 and debt-to-assets at 34.06%, indicating better balance sheet stability.
3. Stock Volatility
Colgate-Palmolive Company
- Very low beta at 0.28 signals defensive stock with limited price swings.
Kenvue Inc.
- Beta at 0.55 shows moderate volatility, reflecting higher market sensitivity.
4. Regulatory & Legal
Colgate-Palmolive Company
- Long-established, but exposed to evolving regulations in consumer safety and international markets.
Kenvue Inc.
- Faces regulatory risks as a newer standalone entity in consumer health, including compliance with drug and cosmetic laws.
5. Supply Chain & Operations
Colgate-Palmolive Company
- Global supply chain complexity risks disruptions amid inflationary pressures.
Kenvue Inc.
- Integrating legacy J&J operations may create transitional supply chain inefficiencies.
6. ESG & Climate Transition
Colgate-Palmolive Company
- Increasing ESG scrutiny; must balance sustainability with cost pressures in consumer goods.
Kenvue Inc.
- ESG initiatives in early stages, with pressure to align skin and health products to climate goals.
7. Geopolitical Exposure
Colgate-Palmolive Company
- Global footprint exposes it to currency fluctuations and trade tensions.
Kenvue Inc.
- Mainly US-focused but faces risks from global supply and regulatory shifts.
Which company shows a better risk-adjusted profile?
Colgate-Palmolive’s highest risk lies in its elevated leverage and supply chain complexity, despite its strong profitability and defensive stock nature. Kenvue’s most impactful risk is regulatory and operational transition challenges as a newer standalone firm. Colgate’s Altman Z-score of 6.75 places it firmly in a safe zone, while Kenvue’s 2.03 signals moderate financial risk. Overall, Colgate-Palmolive shows a superior risk-adjusted profile, supported by robust returns on invested capital and stable market positioning.
Final Verdict: Which stock to choose?
Colgate-Palmolive Company stands out as a cash-generating powerhouse with a durable competitive advantage. Its superior ROIC well above WACC signals strong capital efficiency. The main point of vigilance lies in its stretched liquidity ratios, which could pressure short-term resilience. It suits portfolios targeting steady, long-term value growth.
Kenvue Inc. offers a strategic moat rooted in rising profitability and a growing ROIC trend, reflecting improving operational efficiency. It carries a more moderate safety profile than Colgate, with mixed leverage and liquidity signals. This stock could fit investors seeking growth combined with some margin of safety — a GARP (Growth at a Reasonable Price) candidate.
If you prioritize durable value creation and reliable cash flow generation, Colgate outshines due to its strong moat and capital returns. However, if you seek improving growth potential with a focus on operational turnaround, Kenvue offers better stability in earnings expansion. Each presents an analytical scenario depending on your risk tolerance and strategy.
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 Kenvue Inc. to enhance your investment decisions:
