Consumer stocks are now as risky as they've ever been. Unemployment's historically high, consumers are spooked, and subpar earnings abound as companies pay the price for lost competitive advantage or fiscal irresponsibility. But tough times can offer investors the best chance to buy stocks.

Even if stock prices are low, investors still need to be careful. I've already highlighted two reasons to loatheconsumer-staples company Colgate-Palmolive (NYSE: CL). Many companies simply won't survive the recession in their current form. However, thinning the herd of weaker competitors should lead to big winners in the consumer space when the economy recovers. In this article, I'll discuss two reasons to why you should spare a little love for Colgate-Palmolive.

Margin appeal
The company behind such ubiquitous brands as Colgate, Softsoap, Tom's of Maine, and Hill's Science Diet, Colgate-Palmolive is familiar to consumers and investors alike. However, the company excels in more than simple brand recognition: Among peers, Colgate-Palmolive boasts top-notch margins -- a key factor in sustaining long-term profitability.

In the table below, I've showcased Colgate's trailing-12-month margin performance vis-a-vis that of competitors.

Company

Market Cap

TTM Gross Margin

TTM Operating Margin

Colgate-Palmolive

$38.1 B

57.2%

22.1%

Procter & Gamble (NYSE: PG)

$169.0 B

50.8%

20.4%

Clorox (NYSE: CLX)

$8.2 B

43.4%

19%

Unilever (NYSE: UL)

$79.0 B

47.4%

12.2%

Church & Dwight (NYSE: CHD)

$4.0 B

42.7%

15.9%

Kimberly-Clark (NYSE: KMB)

$23.9 B Continued...