Colgate-Palmolive vs. Kraft Heinz: With the Market Turmoil, Which Stock Is a Better Buy?

With the market turmoil, investors may consider defensive stocks such as Colgate-Palmolive (CL) and Kraft Heinz (KHC). Colgate-Palmolive specializes in personal care categories like toothpaste, while Kraft Heinz focuses on the food industry. This comparison examines their latest performance and valuation to help decide which stock might be a better addition to a portfolio.

Colgate-Palmolive has a diverse business model, operating in oral care, personal care, home care, and pet nutrition, with products sold in over 200 countries. Kraft Heinz, on the other hand, is a global food and beverage company with operations in multiple countries. Both companies face risks from intense competition, foreign currency fluctuations, and potential litigation.

In 2025, Colgate-Palmolive reported $20.4 billion in revenue, a 1.4% increase from the previous year, with a net income of $2.1 billion and a net margin of 10.5%. Kraft Heinz had $24.9 billion in revenue, a 3.5% decrease year-over-year, with a net loss of $5.8 billion and a net margin of -23.4%. Colgate-Palmolive faces risks associated with international operations, while Kraft Heinz deals with competition and debt.

As of Nov. 6, the S&P 500 dropped 3.1%, prompting investors to seek more defensive stocks. Colgate-Palmolive has a lower dividend yield (2.2%) compared to Kraft Heinz (6.5%), but it is a Dividend King, having increased its dividend for 63 consecutive years. The company also reported a 4.6% increase in net sales in the third quarter of 2026.

Overall, Colgate-Palmolive may be a better buy for a defensive position due to its consistent profitability, global brand leadership, and reliable dividend payments.