Reviewing Spectrum Brands Holdings (SPB) and Hollysys Automation Technologies (HOLI)
Spectrum Brands Holdings (NYSE: SPB) and Hollysys Automation Technologies (NASDAQ:HOLI) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
Spectrum Brands Holdings has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Hollysys Automation Technologies has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
Spectrum Brands Holdings pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Hollysys Automation Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Spectrum Brands Holdings pays out 34.3% of its earnings in the form of a dividend. Hollysys Automation Technologies pays out 17.4% 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. Spectrum Brands Holdings has raised its dividend for 3 consecutive years. Spectrum Brands Holdings is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Spectrum Brands Holdings and Hollysys Automation Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spectrum Brands Holdings||5.87%||17.46%||4.45%|
|Hollysys Automation Technologies||15.96%||9.87%||6.74%|
Valuation & Earnings
This table compares Spectrum Brands Holdings and Hollysys Automation Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Spectrum Brands Holdings||$4.94 billion||1.26||$865.80 million||$4.90||21.81|
|Hollysys Automation Technologies||$431.94 million||2.93||$78.11 million||$1.15||18.21|
Spectrum Brands Holdings has higher revenue and earnings than Hollysys Automation Technologies. Hollysys Automation Technologies is trading at a lower price-to-earnings ratio than Spectrum Brands Holdings, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
47.1% of Spectrum Brands Holdings shares are owned by institutional investors. Comparatively, 68.0% of Hollysys Automation Technologies shares are owned by institutional investors. 1.0% of Spectrum Brands Holdings shares are owned 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.
This is a breakdown of recent ratings for Spectrum Brands Holdings and Hollysys Automation Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spectrum Brands Holdings||0||1||7||0||2.88|
|Hollysys Automation Technologies||1||1||2||0||2.25|
Spectrum Brands Holdings presently has a consensus price target of $145.29, suggesting a potential upside of 35.96%. Hollysys Automation Technologies has a consensus price target of $17.87, suggesting a potential downside of 14.66%. Given Spectrum Brands Holdings’ stronger consensus rating and higher possible upside, research analysts clearly believe Spectrum Brands Holdings is more favorable than Hollysys Automation Technologies.
Spectrum Brands Holdings beats Hollysys Automation Technologies on 11 of the 17 factors compared between the two stocks.
Spectrum Brands Holdings Company Profile
Spectrum Brands Holdings, Inc. (SB Holdings) is a diversified global consumer products company. The Company manufactures, markets and/or distributes its products in approximately 160 countries in the North America (NA); Europe, the Middle East and Africa (EMEA); Latin America (LATAM), and Asia-Pacific (APAC) regions. It has five segments: Global Batteries & Appliances (GBA), Global Pet Supplies (PET), Home and Garden (H&G), Hardware & Home Improvement (HHI) and Global Auto Care (GAC). The Company’s GBA segment includes product categories, such as consumer batteries, small appliances and personal care. The Company’s HHI segment includes product categories, such as lockset, plumbing and hardware. The Company’s PET segment’s product categories include aquatics, companion animal and pet food. The Company’s H&G segment’s product categories include controls, household and repellents. The Company’s GAC segment’s product categories include appearance, performance and A/C recharge.
Hollysys Automation Technologies Company Profile
Hollysys Automation Technologies Ltd. is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.
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