Church & Dwight (NYSE: CHD) and Oil-Dri Corporation Of America (NYSE:ODC) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Institutional & Insider Ownership

79.7% of Church & Dwight shares are held by institutional investors. Comparatively, 54.0% of Oil-Dri Corporation Of America shares are held by institutional investors. 2.0% of Church & Dwight shares are held by insiders. Comparatively, 13.9% of Oil-Dri Corporation Of America shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Church & Dwight pays an annual dividend of $0.76 per share and has a dividend yield of 1.5%. Oil-Dri Corporation Of America pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Church & Dwight pays out 45.0% of its earnings in the form of a dividend. Oil-Dri Corporation Of America pays out 45.5% 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. Church & Dwight has raised its dividend for 14 consecutive years and Oil-Dri Corporation Of America has raised its dividend for 11 consecutive years.

Risk and Volatility

Church & Dwight has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Oil-Dri Corporation Of America has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Church & Dwight and Oil-Dri Corporation Of America’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Church & Dwight $3.54 billion 3.46 $845.20 million $1.69 29.07
Oil-Dri Corporation Of America $261.45 million 0.80 $28.61 million $2.02 20.21

Church & Dwight has higher revenue and earnings than Oil-Dri Corporation Of America. Oil-Dri Corporation Of America is trading at a lower price-to-earnings ratio than Church & Dwight, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Church & Dwight and Oil-Dri Corporation Of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Church & Dwight 12.39% 24.21% 10.72%
Oil-Dri Corporation Of America 5.63% 12.39% 7.15%

Analyst Ratings

This is a summary of recent recommendations for Church & Dwight and Oil-Dri Corporation Of America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Church & Dwight 3 8 1 0 1.83
Oil-Dri Corporation Of America 0 0 0 0 N/A

Church & Dwight currently has a consensus price target of $51.11, suggesting a potential upside of 4.05%. Given Church & Dwight’s higher probable upside, analysts clearly believe Church & Dwight is more favorable than Oil-Dri Corporation Of America.

Summary

Church & Dwight beats Oil-Dri Corporation Of America on 12 of the 16 factors compared between the two stocks.

Church & Dwight Company Profile

Church & Dwight Co., Inc. develops, manufactures and markets a range of household, personal care and specialty products. The Company’s segments include Consumer Domestic, Consumer International and Specialty Products Division (SPD). The Company also sells specialty products to industrial customers and distributors. The Consumer Domestic segment includes various brands, as well as other household and personal care products, such as KABOOM cleaning products, ARRID antiperspirant, CLOSE-UP and AIM toothpastes and SIMPLY SALINE nasal saline moisturizer. The Consumer International segment markets a range of personal care products, household and over-the-counter products in international markets, including Canada, France, China, Australia, the United Kingdom, Mexico and Brazil. The Company’s SPD segment is a producer of sodium bicarbonate, which it sells together with other specialty inorganic chemicals for various industrial, institutional, medical and food applications.

Oil-Dri Corporation Of America Company Profile

Oil-Dri Corporation of America is engaged in developing, manufacturing and/or marketing sorbent products. The Company operates through two segments: Retail and Wholesale Products Group, and Business to Business Products Group. The Retail and Wholesale Products Group’s customers include mass merchandisers, wholesale clubs, drugstore chains, dollar stores, distributors of industrial cleanup and automotive products, environmental service companies and sports field product users. The Business to Business Products Group’s customers include processors and refiners of edible oils, petroleum-based oils and biodiesel fuel; manufacturers of animal feed and agricultural chemicals; distributors of animal health and nutrition products, and marketers of consumer products. Its products include agricultural and horticultural products, animal health and nutrition products, bleaching clay and purification aid products, cat litter products, industrial and automotive products, and sports products.

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