Financial Analysis: Oil-Dri Corporation Of America (ODC) & Church & Dwight (CHD)
Oil-Dri Corporation Of America (NYSE: ODC) and Church & Dwight (NYSE:CHD) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
This is a breakdown of current ratings and recommmendations for Oil-Dri Corporation Of America and Church & Dwight, 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|
|Church & Dwight||3||8||1||0||1.83|
Church & Dwight has a consensus target price of $51.11, indicating a potential upside of 3.40%. Given Church & Dwight’s higher probable upside, analysts clearly believe Church & Dwight is more favorable than Oil-Dri Corporation Of America.
Earnings and Valuation
This table compares Oil-Dri Corporation Of America and Church & Dwight’s top-line 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||1.17||$28.61 million||$2.02||20.71|
|Church & Dwight||$3.54 billion||3.48||$845.20 million||$1.69||29.25|
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.
Institutional & Insider Ownership
54.0% of Oil-Dri Corporation Of America shares are owned by institutional investors. Comparatively, 79.7% of Church & Dwight shares are owned by institutional investors. 13.9% of Oil-Dri Corporation Of America shares are owned by company insiders. Comparatively, 2.0% of Church & Dwight shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Oil-Dri Corporation Of America pays an annual dividend of $0.92 per share and has a dividend yield of 2.2%. 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 out 45.5% of its earnings in the form of a dividend. Church & Dwight pays out 45.0% 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 11 consecutive years and Church & Dwight has increased its dividend for 14 consecutive years.
This table compares Oil-Dri Corporation Of America and Church & Dwight’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%|
|Church & Dwight||12.39%||24.21%||10.72%|
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, Church & Dwight has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
Church & Dwight 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 Church & Dwight
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.
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