Investment Comparison: Procter & Gamble vs Clorox
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 35 minutes ago
0mins
Source: Fool
- Market Position of Procter & Gamble: In fiscal year 2025, Procter & Gamble reported revenue of $84.3 billion, a slight increase of 0.3%, with a net income of $15.7 billion and a net margin of 19%, showcasing its strong market presence across 180 countries, although its reliance on Walmart poses certain risks.
- Clorox's Financial Performance: Clorox generated $7.1 billion in revenue for the same fiscal year, reflecting a modest growth of 0.2%, with net income reaching $810 million and a net margin of 11.4%, indicating some improvement despite a significant 27% of sales coming from Walmart.
- Risk Analysis: Procter & Gamble faces intense competition from global rivals like Unilever, along with challenges from geopolitical instability and cybersecurity threats, while Clorox is impacted by raw material cost volatility and inflation, which could squeeze its profitability.
- Cash Flow Comparison: Procter & Gamble's adjusted free cash flow for the latest quarter was $3.0 billion, an increase from the previous year, indicating its ability to maintain and potentially raise dividends, whereas Clorox's free cash flow was $761 million, showing growth but still significantly lower than Procter & Gamble, highlighting its cash flow management challenges.
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Analyst Views on PG
Wall Street analysts forecast PG stock price to rise
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 147.490
Low
150.00
Averages
164.50
High
180.00
Current: 147.490
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cost Reduction Benefits: The company benefited from lower costs, allowing it to improve profit margins while maintaining product quality, thereby strengthening its position in the highly competitive personal care market.
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- Market Position of Procter & Gamble: In fiscal year 2025, Procter & Gamble reported revenue of $84.3 billion, a slight increase of 0.3%, with a net income of $15.7 billion and a net margin of 19%, showcasing its strong market presence across 180 countries, although its reliance on Walmart poses certain risks.
- Clorox's Financial Performance: Clorox generated $7.1 billion in revenue for the same fiscal year, reflecting a modest growth of 0.2%, with net income reaching $810 million and a net margin of 11.4%, indicating some improvement despite a significant 27% of sales coming from Walmart.
- Risk Analysis: Procter & Gamble faces intense competition from global rivals like Unilever, along with challenges from geopolitical instability and cybersecurity threats, while Clorox is impacted by raw material cost volatility and inflation, which could squeeze its profitability.
- Cash Flow Comparison: Procter & Gamble's adjusted free cash flow for the latest quarter was $3.0 billion, an increase from the previous year, indicating its ability to maintain and potentially raise dividends, whereas Clorox's free cash flow was $761 million, showing growth but still significantly lower than Procter & Gamble, highlighting its cash flow management challenges.
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- Market Performance Comparison: Procter & Gamble reported $84.3 billion in revenue for fiscal 2025, reflecting a 0.3% increase year-over-year, with a net income of $15.7 billion and a net margin of 19%, showcasing its robust competitive position globally; in contrast, Clorox generated $7.1 billion in revenue, a 0.2% growth, with a net income of $810 million and a net margin of 11.4%, indicating stability in its niche markets.
- Customer Concentration Risk: Procter & Gamble relies on Walmart for approximately 16% of its sales, while Clorox's dependence is even higher at nearly 27%, exposing both companies to risks associated with changes in retail space and pricing terms, which could significantly impact their financial results.
- Free Cash Flow Status: Procter & Gamble's adjusted free cash flow reached $3.0 billion in the latest fiscal quarter, an increase from the previous year's $2.8 billion, indicating strong cash generation capabilities that support dividend maintenance and growth; Clorox, on the other hand, reported free cash flow of $761 million, which, while improved from $483 million in 2024, remains significantly lower than Procter & Gamble's.
- Dividend Yield Analysis: Procter & Gamble offers a dividend yield of 2.9%, while Clorox provides a higher yield of 5.1%; however, Procter & Gamble's superior free cash flow suggests a stronger capacity to sustain and potentially increase dividends over the long term.
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