Quick verdict: CLX vs PG in 2026

The comparison between The Clorox Company (CLX) and The Procter & Gamble Company (PG) in 2026 reveals a nuanced picture, with neither stock holding a clear overall lead. While PG maintains a slight edge in revenue growth and significantly higher profitability margins, CLX stands out with more attractive valuation metrics and higher potential upside according to DCF analysis and analyst price targets. PG is favored by analysts, but CLX offers a better dividend yield for income-focused investors. This is not investment advice.

CLX vs PG: key metrics side by side

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

CLX vs PG valuation comparison

When considering the CLX vs PG valuation, The Clorox Company appears to be significantly cheaper based on several key metrics. CLX trades at a P/E ratio of 14.51x, which is notably lower than Procter & Gamble’s P/E of 21.31x. This suggests that investors are currently paying less for each dollar of CLX’s earnings compared to PG’s. Furthermore, the Discounted Cash Flow (DCF) analysis points to a massive potential upside for CLX at +271.7%, suggesting an intrinsic value of $335.85 compared to its current price of $90.365. This contrasts sharply with PG’s DCF upside of +52.9%, implying a fair value of $225.17 against its $147.23 price.

The price-to-book (P/B) ratio further highlights this valuation disparity, though in a more complex manner. CLX has a P/B of -163.69x, indicating a negative shareholder equity, likely due to accumulated losses or significant share buybacks exceeding retained earnings, which can sometimes signal financial distress or aggressive capital management. In contrast, PG maintains a positive P/B of 6.52x, reflecting a healthier book value position. Despite the negative P/B, the substantial DCF upside for CLX suggests that its future cash flow generation capabilities are significantly undervalued by the market, making it potentially more attractive to value investors willing to delve into the underlying financial structure.

CLX vs PG growth comparison

In terms of growth, The Procter & Gamble Company demonstrates slightly stronger momentum compared to The Clorox Company. PG reported a revenue growth of +0.3% year-over-year, marginally outpacing CLX’s +0.2% revenue growth. While these figures indicate modest top-line expansion for both consumer defensive giants, PG’s significantly larger revenue base of $84.28B compared to CLX’s $7.10B means that even a slightly higher percentage growth translates to a much larger absolute increase in sales. This scale advantage often allows PG to invest more heavily in R&D and marketing, potentially fueling future growth.

Beyond revenue, PG also exhibits superior profitability margins, which are critical for sustainable growth. Its net margin stands at an impressive 19.22% and EBITDA margin at 26.82%, both substantially higher than CLX’s net margin of 11.18% and EBITDA margin of 19.62%. These stronger margins indicate that PG is more efficient at converting sales into profit, giving it greater financial flexibility. Although specific forward growth estimates are not provided, PG’s current margin advantage and larger scale suggest it possesses stronger underlying financial health to capitalize on market opportunities and drive future expansion, making it the growth leader in this CLX vs PG comparison.

CLX vs PG profitability

Examining the profitability of CLX vs PG reveals a clear advantage for The Procter & Gamble Company. PG boasts a robust net margin of 19.22%, nearly double that of The Clorox Company, which reported a net margin of 11.18%. This significant difference indicates that PG is far more efficient at managing its costs and turning revenue into actual profit. Similarly, PG’s EBITDA margin of 26.82% comfortably surpasses CLX’s 19.62%, reinforcing its operational superiority across various business functions. These higher margins suggest PG benefits from economies of scale, stronger brand pricing power, and more effective cost control strategies within the competitive consumer defensive sector.

Regarding return on equity (ROE), both companies currently report N/A%, indicating that data for this specific metric was not available for direct comparison at the time. However, in terms of free cash flow generation, PG once again takes the lead. Its FCF yield is 4.39%, outperforming CLX’s FCF yield of 3.48%. This higher FCF yield means that PG generates more cash relative to its market capitalization, providing greater flexibility for reinvestment, debt reduction, or shareholder returns. Therefore, when evaluating which company generates more cash and is fundamentally more profitable, Procter & Gamble demonstrates a clear and consistent advantage over Clorox.

Analyst ratings: CLX vs PG

The analyst community shows a distinct preference for The Procter & Gamble Company over The Clorox Company as of 2026-05-07. Out of 52 analysts covering PG, a strong majority of 53.8% recommend a “Buy” rating, leading to a consensus of “Buy” for the stock. Their average price target for PG is $161.88, which suggests a modest upside of +10.0% from its current price of $147.23. This robust consensus reflects confidence in PG’s stable business model, market leadership, and consistent performance, even if the implied short-term upside is conservative.

Conversely, The Clorox Company garners significantly less bullish sentiment from analysts. With 28 analysts covering CLX, only 14.3% have a “Buy” rating, resulting in a consensus of “Hold.” Despite the lower confidence, analysts have set an average price target of $105.5 for CLX, which implies a higher potential upside of +16.7% from its current price of $90.365. This scenario often suggests that while fewer analysts are outright recommending CLX, those who do see a greater potential for price appreciation, possibly due to a belief that the stock is currently undervalued or poised for a turnaround, despite the overall “Hold” consensus.

Should I buy CLX or PG stock in 2026?

When considering whether should I buy CLX or PG stock in 2026, the choice largely depends on your investment objectives. For growth-oriented investors, Procter & Gamble (PG) might present a slightly more compelling case. While both companies exhibit modest year-over-year revenue growth (CLX at 0.2% and PG at 0.3%), PG’s significantly larger scale and superior profitability margins – with a net margin of 19.22% and EBITDA margin of 26.82% compared to CLX’s 11.18% and 19.62% respectively – suggest a more robust foundation for sustained, albeit slow, growth and operational efficiency. PG’s stronger FCF yield also points to its greater ability to generate cash for future investments.

For value investors, The Clorox Company (CLX) appears to offer a more attractive entry point based on current fundamentals and valuation metrics. CLX’s P/E ratio of 14.51x is considerably lower than PG’s 21.31x, indicating it is trading at a cheaper multiple of its earnings. More strikingly, the DCF analysis for CLX suggests a substantial upside of +271.7%, implying a fair value significantly above its current stock price. This contrasts with PG’s more moderate DCF upside of +52.9%. While CLX’s negative P/B ratio warrants closer scrutiny, its deep discount by earnings and DCF metrics suggests a potential undervaluation that could appeal to those seeking long-term capital appreciation from a turnaround or under-recognized value.

Income-focused investors comparing the dividend payouts should note that CLX currently offers a slightly higher dividend yield of 0.05%, compared to PG’s 0.03%. While both yields are relatively low, CLX provides a marginal edge for those prioritizing dividend income. Ultimately, the decision on should I buy CLX or PG stock in 2026 hinges on whether you prioritize PG’s greater stability, profitability, and analyst favorability, or CLX’s potentially deeper value and higher implied upside despite its current challenges. This is not investment advice; always conduct thorough personal research.

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