Oil-Dri Corporation Of America (NYSE: ODC) and Clorox Company (The) (NYSE:CLX) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Volatility & Risk

Oil-Dri Corporation Of America has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Clorox Company (The) has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.

Earnings & Valuation

This table compares Oil-Dri Corporation Of America and Clorox Company (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oil-Dri Corporation Of America $261.45 million 0.80 $28.61 million $2.02 20.21
Clorox Company (The) $5.97 billion 2.90 $1.26 billion $5.33 25.15

Clorox Company (The) 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 Clorox Company (The), indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

54.0% of Oil-Dri Corporation Of America shares are owned by institutional investors. Comparatively, 71.3% of Clorox Company (The) shares are owned by institutional investors. 13.9% of Oil-Dri Corporation Of America shares are owned by company insiders. Comparatively, 0.7% of Clorox Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Oil-Dri Corporation Of America and Clorox Company (The), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oil-Dri Corporation Of America 0 0 0 0 N/A
Clorox Company (The) 0 9 2 0 2.18

Clorox Company (The) has a consensus target price of $126.80, indicating a potential downside of 5.40%. Given Clorox Company (The)’s higher possible upside, analysts plainly believe Clorox Company (The) is more favorable than Oil-Dri Corporation Of America.

Dividends

Oil-Dri Corporation Of America pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Clorox Company (The) pays an annual dividend of $3.36 per share and has a dividend yield of 2.5%. Oil-Dri Corporation Of America pays out 45.5% of its earnings in the form of a dividend. Clorox Company (The) pays out 63.0% 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. Oil-Dri Corporation Of America has increased its dividend for 39 consecutive years and Clorox Company (The) has increased its dividend for 14 consecutive years.

Profitability

This table compares Oil-Dri Corporation Of America and Clorox Company (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oil-Dri Corporation Of America 5.63% 12.39% 7.15%
Clorox Company (The) 11.74% 190.67% 15.74%

Summary

Clorox Company (The) beats Oil-Dri Corporation Of America on 12 of the 16 factors compared between the two stocks.

About Oil-Dri Corporation Of America

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.

About Clorox Company (The)

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.

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