Newell Brands (NYSE: NWL) and NACCO Industries (NYSE:NC) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

94.9% of Newell Brands shares are owned by institutional investors. Comparatively, 49.6% of NACCO Industries shares are owned by institutional investors. 1.0% of Newell Brands shares are owned by company insiders. Comparatively, 30.6% of NACCO Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Newell Brands and NACCO Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newell Brands 0 3 8 1 2.83
NACCO Industries 0 0 0 0 N/A

Newell Brands currently has a consensus price target of $57.83, suggesting a potential upside of 20.19%. Given Newell Brands’ higher probable upside, equities research analysts clearly believe Newell Brands is more favorable than NACCO Industries.

Profitability

This table compares Newell Brands and NACCO Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newell Brands 7.87% 11.47% 3.99%
NACCO Industries 4.15% 25.69% 8.70%

Volatility & Risk

Newell Brands has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Dividends

Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. NACCO Industries pays an annual dividend of $1.09 per share and has a dividend yield of 1.5%. Newell Brands pays out 36.9% of its earnings in the form of a dividend. NACCO Industries pays out 21.0% 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. NACCO Industries has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Newell Brands and NACCO Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Newell Brands $15.41 billion 1.53 $2.63 billion $2.49 19.33
NACCO Industries $854.67 million 0.45 $27.70 million $5.18 14.11

Newell Brands has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than Newell Brands, indicating that it is currently the more affordable of the two stocks.

Summary

Newell Brands beats NACCO Industries on 11 of the 17 factors compared between the two stocks.

Newell Brands Company Profile

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.

NACCO Industries Company Profile

NACCO Industries, Inc. is a holding company. The Company’s principal businesses include mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. The Company’s subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection, LLC (KC). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. The Company’s HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including, blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. In addition, HBB designs, markets and distributes commercial products for restaurants, bars and hotels.

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