Despite rising inflation, an improving job market and consistent demand for consumer goods should drive the industry’s growth in the coming months. Consequently, we think popular consumer goods stocks Procter & Gamble (PG) and Unilever (NYSE:UL) should benefit. But which of these stocks is a better buy now? Let’s find out.The Procter & Gamble Company (PG) in Cincinnati, Ohio, and Unilever PLC (UL) in London are leading players in the global consumer goods market. PG sells packaged goods through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, and department stores. The company operates in five business segments—beauty; grooming; health care; fabric & home care; and baby, feminine & family care. UL is a fast-moving consumer goods company that operates through Beauty & Personal Care; Foods & Refreshment; and Home Care segments.
Consumer goods stocks have seen strong sales growth in the second quarter of 2021, owing to rising commodity prices and an improving job market. Despite rising inflation, relatively inelastic demand for consumer goods should drive the industry’s growth in the coming months. The fast-moving, global consumer goods market is projected to grow at a 5.4% CAGR to $15.36 trillion by 2025. So, both UL and PG should benefit.
While UL’s shares have lost 4.6% in price over the past month, PG has advanced marginally. PG is a clear winner with 17% price gains versus UL’s 3.2% returns in terms of their past six months' performance. But which of these stocks is a better pick now? Let’s find out.