Which one is better-Colgate or Head & shoulders?

Confused?

I felt the same when I read this question. If you ask which one to choose betweenHead & shoulder and DOVE, then it's easy. It's simple to compare the stocks when they are from the same industry.

However, when you are comparing two stocks from the differentindustry, you have to check a lot of different factors. Like how the overall industry is performing, what the competitors of those stocks in their industry, what's the competitive advantage of those companies, what's their product/services etc.

One cannot compare the number of sales of Colgate with that of an automobile company. The no of sales of FMCG will definitely be high. On the other hand, the profit margin of an automobile company will be way above that of the FMCG sector.

When you are investigating two companies from different sectors, then you first have to do the industry analysis. Which industry can give the better returns? And then follow the top-down approach.

I cannot answer which one is better without properly analyzing the industries.

Nevertheless, if you just want a generic answer, Maruti Suzuki is a good choice.

Although, both the companies are leaders in their industry, however, Maruti Suzuki has got a huge advantage over its competitors. It has a high market share in the passenger vehicle segment.

Plus, the car services offered by Maruti, which can be found on every corner of a city, is a huge competitive advantage for Maruti. You cannot get your Hyundai, ford or even Tata car so much easily serviced as compared to your Maruti car. That's why sales of Maruti are continuously increasing, and hence a good choice for long-term investment.

I hope it helps. Happy Investing.

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