Analyzing Zep (ZEP) and WD-40 (WDFC)
Zep (NYSE: ZEP) and WD-40 (NASDAQ:WDFC) are both non-cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.
This table compares Zep and WD-40’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Zep and WD-40’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WD-40||$381.10 million||3.88||$80.20 million||$3.70||28.49|
WD-40 has higher revenue and earnings than Zep.
Institutional and Insider Ownership
79.4% of WD-40 shares are owned by institutional investors. 3.9% of WD-40 shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Zep and WD-40, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WD-40 has a consensus price target of $108.67, suggesting a potential upside of 3.10%. Given WD-40’s higher possible upside, analysts clearly believe WD-40 is more favorable than Zep.
WD-40 pays an annual dividend of $1.96 per share and has a dividend yield of 1.9%. Zep does not pay a dividend. WD-40 pays out 53.0% of its earnings in the form of a dividend. Zep has increased its dividend for 4 consecutive years.
WD-40 beats Zep on 8 of the 10 factors compared between the two stocks.
Zep Inc. is a consumable chemical packaged goods company, providing a variety of chemicals and related products and services that help professionals maintain, clean and protect their assets. The Company markets its products and services under brand names, including Zep, Zep Professional, Zep Commercial, Zep Automotive and other Zep Inc. brands. Its product portfolio, which is produced using more than 4,000 formulations, includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, pest- and weed-control products, air-care products and delivery systems and a variety of automotive maintenance chemicals. The Company manufactures its products at nine facilities located in the United States, Canada, the Netherlands, Italy, and United Kingdom.
WD-40 Company is a global company engaged in developing and selling products, which solve problems in workshops, factories and homes. The Company’s segments include the Americas; Europe, Middle East and Africa (EMEA), and Asia-Pacific. The Company’s Americas segment includes the United States, Canada and Latin America. The EMEA segment includes countries in Europe, the Middle East, Africa and India. The Asia-Pacific segment includes Australia, China and other countries in the Asia region. The Company has two product groups, which include maintenance products and homecare and cleaning products. As of August 31, 2016, the Company marketed and sold its products in more than 176 countries and territories around the world primarily through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sport retailers, independent bike dealers, online retailers and industrial distributors and suppliers.
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