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CL vs TGT

CL
Colgate-Palmolive Company
NEUTRAL
Price
$78.05
Market Cap
$63.51B
Sector
Consumer Defensive
AI Confidence
72%
TGT
Target Corporation
NEUTRAL
Price
$121.29
Market Cap
$54.93B
Sector
Consumer Defensive
AI Confidence
80%

Valuation

P/E Ratio
CL
21.86
TGT
14.92
Forward P/E
CL
20.22
TGT
14.25
P/B Ratio
CL
73.49
TGT
3.4
P/S Ratio
CL
3.16
TGT
0.52
EV/EBITDA
CL
14.6
TGT
8.63

Profitability

Gross Margin
CL
60.15%
TGT
27.93%
Operating Margin
CL
20.23%
TGT
4.91%
Profit Margin
CL
14.47%
TGT
3.54%
ROE
CL
293.63%
TGT
24.03%
ROA
CL
15.34%
TGT
5.26%

Growth

Revenue Growth
CL
1.9%
TGT
-1.5%
Earnings Growth
CL
1.1%
TGT
-5.0%

Financial Health

Debt/Equity
CL
6.8
TGT
1.26
Current Ratio
CL
0.93
TGT
0.94
Quick Ratio
CL
0.51
TGT
0.34

Dividends

Dividend Yield
CL
2.66%
TGT
3.76%
Payout Ratio
CL
57.14%
TGT
55.6%

AI Verdict

CL NEUTRAL

Colgate-Palmolive (CL) trades at a slight discount to sector peers on P/E (21.86 vs 22.17) but faces meaningful headwinds from near-zero revenue growth (1.9% YoY) and deteriorating short-term momentum, with 1Y and 6M returns of -12.6% and -13.4%, respectively. The company maintains elite profitability—Gross Margin of 60.15%, Operating Margin of 20.23%, and ROE of 293.63%—supported by consistent earnings beats over the last 25 quarters, though recent Q/Q EPS growth has turned negative. Elevated leverage (Debt/Equity: 6.80) and weak liquidity (Current Ratio: 0.93) raise structural concerns, while the 2.66% dividend yield offers modest income appeal with a sustainable 57% payout ratio. Analysts are constructive with a $87.26 target implying ~12% upside, but lack of insider activity and stagnant top-line expansion cap near-term catalysts.

Strengths
Exceptional profitability: 60.15% gross margin and 20.23% operating margin, among the highest in consumer defensive sector
Outstanding ROE of 293.63%, reflecting aggressive leverage and efficient equity utilization
Consistent earnings outperformance: 22 out of last 25 quarters beat estimates, with 4-quarter average surprise of 3.78%
Risks
Anemic growth: Revenue up only 1.9% YoY and Q/Q EPS declining -1.1%, signaling stagnation
High financial leverage: Debt/Equity ratio of 6.80, significantly above safe thresholds and likely sector highs
Weak liquidity position: Current ratio of 0.93 and quick ratio of 0.51 indicate potential near-term solvency pressure
TGT NEUTRAL

TGT shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Attractive valuation with P/E of 14.9
Strong ROE of 24.0%
Risks
Premium vs Graham Number ($80.81)
Low profit margin of 3.5%
Declining revenue (-1.5%)

Compare Another Pair

CL vs TGT: Head-to-Head Comparison

This page compares Colgate-Palmolive Company (CL) and Target Corporation (TGT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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