Quick verdict: CL vs PG in 2026

The Procter & Gamble Company (PG) generally holds the overall edge in this CL vs PG stock comparison 2026, demonstrating stronger profitability metrics and more attractive valuation ratios. While Colgate-Palmolive (CL) shows a slight lead in revenue growth and free cash flow yield, PG excels with superior net margins, a lower P/E, and a significantly higher DCF upside. Analysts also favor PG with a “Buy” consensus compared to CL’s “Hold,” and it offers the most potential upside. Not investment advice.

CL vs PG: key metrics side by side

Full side-by-side comparison of CL and PG across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-07.

CL vs PG valuation comparison

When conducting a CL vs PG valuation, the disparity in pricing multiples is immediately evident. Colgate-Palmolive (CL) trades at a P/E ratio of 33.53x, which is significantly higher than The Procter & Gamble Company’s (PG) P/E of 21.31x. This suggests that investors are currently willing to pay a premium for CL’s earnings compared to PG’s, potentially indicating higher growth expectations or perceived stability despite the more modest revenue growth figures. Looking at the Price-to-Book (P/B) ratio, CL stands at an exceptionally high 482.54x, while PG’s P/B is a much more grounded 6.52x. This vast difference indicates that CL’s market value is substantially higher relative to its book value, raising questions about its tangible asset backing compared to PG.

From a discounted cash flow (DCF) perspective, which aims to determine the intrinsic value of a company, PG appears to offer a considerably larger upside. PG’s DCF calculation suggests an upside of +52.9%, indicating that its current price of $147.23 is well below its estimated fair value of $225.17. In contrast, CL’s DCF analysis points to an upside of +33.1%, with its current price of $87.21 below an estimated fair value of $116.11. Based on these metrics, PG appears to be the cheaper stock from both a P/E and P/B standpoint, and offers a more substantial potential return according to the DCF model, making it a stronger contender in the CL vs PG fundamentals and valuation analysis for value-oriented investors in 2026.

CL vs PG growth comparison

In the CL vs PG growth comparison, Colgate-Palmolive (CL) shows a slight edge in recent revenue momentum. CL reported a year-over-year revenue growth of +1.4%, with total revenues reaching $20.38 billion. This indicates a modest but positive trajectory for the toothpaste and household products giant. On the other hand, The Procter & Gamble Company (PG), a much larger entity with $84.28 billion in revenue, posted a lower revenue growth rate of +0.3%. While both companies operate in the mature consumer defensive sector, CL’s higher growth rate, albeit marginal, suggests a relatively stronger recent performance in expanding its top line.

Despite CL’s slightly better revenue growth, profitability margins provide a more nuanced picture of operational efficiency. CL’s EBITDA margin stands at 18.84%, and its net margin is 10.04%. PG, however, demonstrates superior operational efficiency with an EBITDA margin of 26.82% and a net margin of 19.22%. This indicates that while CL is growing revenue faster, PG is significantly more adept at converting its sales into earnings. Therefore, while CL might have stronger top-line momentum, PG’s superior margin profile allows it to translate that revenue into higher profits, which is a critical aspect for long-term investors. Considering the overall picture for 2026, PG’s ability to maintain high margins despite slower revenue growth could be seen as a sign of robust operational management and market dominance.

CL vs PG profitability

When assessing CL vs PG profitability, The Procter & Gamble Company (PG) emerges as the clear leader in margin efficiency. PG boasts a net margin of 19.22%, nearly double that of Colgate-Palmolive (CL), which reported a net margin of 10.04%. This significant difference underscores PG’s ability to retain a much larger portion of its revenue as profit, reflecting superior cost management, stronger brand pricing power, or a more favorable, high-margin product mix across its vast portfolio. Similarly, PG’s EBITDA margin of 26.82% also significantly outpaces CL’s 18.84%, reinforcing PG’s stronger operational profitability before accounting for depreciation, amortization, interest, and taxes.

Both companies currently report “N/A%” for Return on Equity (ROE), preventing a direct comparison on this specific metric. However, looking at Free Cash Flow (FCF) yield, CL demonstrates a slightly better performance at 5.38% compared to PG’s 4.39%. This indicates that CL is generating a higher percentage of free cash flow relative to its market capitalization, suggesting efficient cash generation from its operations. Despite CL’s edge in FCF yield, PG’s substantially higher net and EBITDA margins mean it generates more profit from each dollar of sales, showcasing its ability to generate significant cash and profits from its extensive brand portfolio. For investors prioritizing strong earnings and efficient operations, PG’s overall profitability metrics present a compelling case.

Analyst ratings: CL vs PG

The consensus among analysts presents a differing view on CL vs PG stock comparison 2026. For Colgate-Palmolive (CL), out of 45 analysts, 42.2% currently issue a “Buy” rating. The overall consensus for CL is “Hold,” with a target price of $94.9, representing a modest upside of +8.8% from its current price of $87.21. This suggests that while a good portion of analysts see buying opportunities, the broader sentiment leans towards maintaining existing positions rather than aggressive accumulation, perhaps due to its higher valuation multiples compared to peers in the consumer defensive sector.

In contrast, The Procter & Gamble Company (PG) enjoys a more favorable outlook from the analyst community. With 52 analysts covering the stock, a higher percentage of 53.8% recommend a “Buy.” The consensus rating for PG is a strong “Buy,” reflecting greater confidence in its future performance and market position. Analysts have set a target price of $161.88 for PG, which implies a +10.0% upside from its current price of $147.23. This slightly higher price target upside, coupled with a stronger “Buy” consensus, indicates that analysts generally prefer PG over CL for potential capital appreciation and overall investment appeal heading into 2026. PG’s FMP rating of A- also outperforms CL’s B+, further solidifying its preferred status among financial modelers.

Should I buy CL or PG stock in 2026?

Deciding whether should I buy CL or PG stock in 2026 depends heavily on individual investment objectives and risk tolerance. For growth-oriented investors, Colgate-Palmolive (CL) might appear marginally more attractive given its slightly higher year-over-year revenue growth of 1.4% compared to PG’s 0.3%. CL also demonstrates a better free cash flow yield of 5.38% versus PG’s 4.39%, suggesting efficient cash generation relative to its market capitalization. However, it’s crucial to consider that PG, with its significantly larger revenue base of $84.28 billion, might find it inherently more challenging to post high percentage growth rates compared to CL’s $20.38 billion, potentially making CL’s smaller base easier to grow from.

For value investors keenly focused on the CL vs PG fundamentals and valuation, The Procter & Gamble Company (PG) presents a more compelling case. PG trades at a considerably lower P/E ratio of 21.31x, a stark contrast to CL’s elevated P/E of 33.53x. Similarly, PG’s P/B ratio of 6.52x is far more reasonable than CL’s 482.54x, indicating that PG is priced more favorably relative to its assets. Furthermore, PG’s discounted cash flow (DCF) analysis suggests a robust upside of +52.9%, significantly higher than CL’s +33.1%, implying a greater undervaluation and potential for price appreciation based on intrinsic value.

Regarding income, both companies are consumer defensive giants known for consistent dividends. PG offers a dividend yield of 0.03%, slightly higher than CL’s 0.02%. While the difference in yield is small, PG’s superior net margin of 19.22% (vs CL’s 10.04%) and significantly lower debt-to-equity ratio of 0.68x (vs CL’s 54.99x) suggest a stronger financial position to sustain and potentially grow its dividend over the long term, offering greater dividend safety. Ultimately, PG appears to be the more financially robust choice with better valuation and profitability metrics, making it a strong contender for various investor profiles in 2026. This is not investment advice; always conduct your own thorough research.

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