Clorox (NYSE: CLX) and Newell Brands (NYSE:NWL) are both large-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitabiliy, earnings, dividends, analyst recommendations and institutional ownership.
Dividends Clorox pays an annual dividend of $3.20 per share and has a dividend yield of 2.3%. Newell Brands pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. Clorox pays out 64.1% of its earnings in the form of a dividend. Newell Brands pays out 65.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Newell Brands has raised its dividend for 39 consecutive years. Clorox is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation This table compares Clorox and Newell Brands’ top-line revenue, earnings per share and valuation.
Newell Brands has higher revenue and earnings than Clorox. Clorox is trading at a lower price-to-earnings ratio than Newell Brands, indicating that it is currently the more affordable of the two stocks. Volatility & Risk
Clorox has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Analyst Recommendations
This is a breakdown of recent ratings and target prices for Clorox and Newell Brands, as reported by MarketBeat.com. Clorox presently has a consensus target price of $126.00, indicating a potential downside of 7.78%. Newell Brands has a consensus target price of $58.36, indicating a potential upside of 9.39%. Given Newell Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Newell Brands is more favorable than Clorox.
Institutional & Insider Ownership 70.1% of Clorox shares are held by institutional investors. Comparatively, 93.2% of Newell Brands shares are held by institutional investors. 0.7% of Clorox shares are held by company insiders. Comparatively, 0.7% of Newell Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
About Clorox The Clorox Company is a manufacturer and marketer of consumer and professional products. The Company sells its products primarily through mass retail outlets, e-commerce channels, wholesale distributors and medical supply distributors. The Company operates through four segments: Cleaning, Household, Lifestyle and International. Its Cleaning segment consists of laundry, home care and professional products marketed and sold in the United States. Its Household segment consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Its Lifestyle segment consists of food products, water-filtration systems and filters, and natural personal care products marketed and sold in the United States. Its International segment consists of products sold outside the United States. It markets some of the consumer brand names, such as namesake bleach and cleaning products, Pine-Sol cleaners, Liquid-Plumr clog removers and Kingsford charcoal.
About Newell Brands Newell Brands Inc. is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle. Writing segment consists of the Writing and Creative Expression business. Home Solutions segment designs, manufactures or sources and distributes a range of consumer products under various brand names. Commercial Products segment designs, manufactures or sources and distributes cleaning and refuse products. Its Baby & Parenting segment designs and distributes infant and juvenile products.
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