Newell Brands (NWL) versus HRG Group (HRG) Financial Review
Newell Brands (NYSE: NWL) and HRG Group (NYSE:HRG) are both mid-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.
Valuation and Earnings
This table compares Newell Brands and HRG Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Newell Brands||$15.41 billion||1.40||$2.63 billion||$2.49||17.69|
|HRG Group||$5.00 billion||0.60||$857.70 million||$0.62||24.18|
Newell Brands has higher revenue and earnings than HRG Group. Newell Brands is trading at a lower price-to-earnings ratio than HRG Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Newell Brands has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, HRG Group has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Newell Brands and HRG Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newell Brands presently has a consensus target price of $57.67, suggesting a potential upside of 30.94%. Given Newell Brands’ higher possible upside, equities research analysts clearly believe Newell Brands is more favorable than HRG Group.
This table compares Newell Brands and HRG Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
92.4% of Newell Brands shares are owned by institutional investors. Comparatively, 94.4% of HRG Group shares are owned by institutional investors. 1.0% of Newell Brands shares are owned by insiders. Comparatively, 1.2% of HRG Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. HRG Group does not pay a dividend. Newell Brands pays out 36.9% of its earnings in the form of a dividend.
Newell Brands beats HRG Group on 11 of the 15 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.
HRG Group Company Profile
HRG Group, Inc. is a holding company. The Company operates through two segments: Consumer Products and Insurance. The Consumer Products segment consists of the Company’s subsidiary, Spectrum Brands Holdings, Inc. (Spectrum Brands). The Insurance segment includes its subsidiary, Front Street Re (Delaware) Ltd. (Front Street). Through Spectrum Brands, the Company is a diversified global branded consumer products company. The Company offers seven product categories: consumer batteries, small appliances, global pet supplies, home and garden control products, personal care products, hardware and home improvement products and global auto care. Through Front Street, the Company is engaged in the business of providing long-term reinsurance, including reinsurance to the specialty insurance sector of fixed, deferred and payout annuities. The Company’s subsidiary, Fidelity & Guaranty Life (FGL), provides life insurance and annuity products.
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