HRG Group (NYSE: HRG) and NACCO Industries (NYSE:NC) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Valuation and Earnings

This table compares HRG Group and NACCO Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HRG Group $5.00 billion 0.61 $857.70 million $0.62 24.60
NACCO Industries $854.67 million 0.67 $27.70 million $5.18 16.18

HRG Group has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than HRG Group, indicating that it is currently the more affordable of the two stocks.

Dividends

NACCO Industries pays an annual dividend of $1.09 per share and has a dividend yield of 1.3%. HRG Group does not pay a dividend. NACCO Industries pays out 21.0% of its earnings in the form of a dividend. HRG Group has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for HRG Group and NACCO Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HRG Group 0 0 0 0 N/A
NACCO Industries 0 0 0 0 N/A

Volatility and Risk

HRG Group has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Profitability

This table compares HRG Group and NACCO Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HRG Group 2.49% -5.34% -0.27%
NACCO Industries 4.15% 25.69% 8.70%

Institutional and Insider Ownership

94.3% of HRG Group shares are held by institutional investors. Comparatively, 49.2% of NACCO Industries shares are held by institutional investors. 1.2% of HRG Group shares are held by company insiders. Comparatively, 30.6% of NACCO Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

NACCO Industries beats HRG Group on 7 of the 13 factors compared between the two stocks.

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.

NACCO Industries Company Profile

NACCO Industries, Inc. is a holding company. The Company’s principal businesses include mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. The Company’s subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection, LLC (KC). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. The Company’s HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including, blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. In addition, HBB designs, markets and distributes commercial products for restaurants, bars and hotels.

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