The Procter & Gamble Company (PG), Unilever plc (ADR) (UL): Are These Three Global Consumer Giants Good Investment Opportunities?

Unilever plc (ADR) (NYSE:UL) has kept expanding its footprint in emerging markets, increasing its stake in Hindustan Unilever in India. It sees rural India (home to 700 million people) as one of the biggest growth opportunities for the company.

Colgate-Palmolive – the leading global oral care business

Colgate-Palmolive Company (NYSE:CL) also has a higher valuation than P&G. It is trading at $60.90 per share, with the total market cap of $56.50 billion. The market values the company at 19.5 times its forward earnings. Colgate-Palmolive is the global oral care leader with more than 45% market share of the global toothpaste market.

In the second quarter 2013, Colgate-Palmolive managed to generate as much as 8.5% year-over-year organic sales in emerging markets, especially in Brazil, Russia, China, India and Turkey. The company reported market share gains in several big markets such as China, Russia and Brazil, along with year-over-year growth of 10% in Greater Asia/Africa.

Colgate-Palmolive also had a higher revenue percentage share than P&G at 50% from emerging markets, including Latin America, Greater Asia/Africa and Central Europe.

Income investors might prefer Unilever plc (ADR) (NYSE:UL) the most with its highest dividend yield at 3.40%. P&G ranks second with a 3% dividend yield, while Colgate-Palmolive comes in third by offering shareholders dividends with a yield at 2.20%.

With its global-leading position and growing exposure to fast-growing emerging markets, Colgate-Palmolive’s operating performance expects to increase in the future.

My Foolish take

All three global consumer giants are good picks for long-term shareholders. This is due to their market-leading positions, decent dividend yields and the potential to expand their businesses deeper into emerging markets. I like The Procter & Gamble Company (NYSE:PG) the most among the three because of its low valuation and growing operating performance. Moreover, an ongoing plan for $10 billion cost savings will improve the company’s bottom line; this will drive the company’s share price much higher in the next three years.

The article Are These Three Global Consumer Giants Good Investment Opportunities? originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble and Unilever plc (ADR) (NYSE:UL). Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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