Better Buy for 2022: Procter & Gamble vs. Kimberly-Clark

The Procter & Gamble Company (PG) in Cincinnati, Ohio, provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. In comparison…

Dallas, Tex.-based Kimberly-Clark Corporation (KMB – Get Rating) and its subsidiaries manufacture and market personal care and consumer tissue products worldwide. It operates through three segments: Personal Care; Consumer Tissue; and K-C Professional.

Despite supply chain, labor, and inflationary challenges amid a resurgence COVID-19 cases, the consumer goods industry has been rebounding thanks to pent-up demand and rising consumer spending. In addition, according to The Conference Board, the consumer confidence index was 115.8 points in December, up from an upwardly revised 111.9 in November. Strong consumer confidence is expected to translate into more sales. Furthermore, rising demand for digital goods, automated buying, ambient computing, and edge manufacturing are expected to drive the consumer goods market’s growth. Therefore, both PG and KMB should benefit.

PG’s stock has gained 11.1% in price over the past three months, while KMB has returned 7.8%. Also, PG’s 15.6% gains over the past six months are significantly higher than KMB’s 6.4% returns. And PG is the clear winner with 17.2% gains versus KMB’s 4.1% returns in terms of the past nine months’ performance.

But which of these two stocks is a better buy now? Let’s find out.

Latest Developments

On Jan. 5, 2022, P&G Beauty debuted its  virtual storytelling world, BeautySPHERE, at the Consumer Electronics Show. This first step into the metaverse allows visitors to virtually interact with the company’s portfolio of brands through live and simulated content. This facility could increase the demand for its products.

On Oct. 25, 2021, KMB’s Chairman and CEO, Mike Hsu, said, “We will continue to invest in our brands and capabilities as we navigate through this volatile and difficult macro environment. Our strategy is working, and we remain confident in our future and our ability to create long-term shareholder value.”


Recent Financial Results

PG’s net sales increased 5% year-over-year to $20.34 billion for its fiscal first quarter, ended Sept. 30, 2021. However…


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