Revlon (NYSE: REV) and Matthews International Corporation (NASDAQ:MATW) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Profitability

This table compares Revlon and Matthews International Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Revlon -4.35% -3.09% 0.63%
Matthews International Corporation 5.17% 16.23% 5.40%

Earnings & Valuation

This table compares Revlon and Matthews International Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Revlon $2.65 billion 0.49 $293.10 million ($2.20) -11.16
Matthews International Corporation $1.50 billion 1.34 $190.96 million $2.39 26.05

Revlon has higher revenue and earnings than Matthews International Corporation. Revlon is trading at a lower price-to-earnings ratio than Matthews International Corporation, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

14.0% of Revlon shares are held by institutional investors. Comparatively, 78.6% of Matthews International Corporation shares are held by institutional investors. 78.0% of Revlon shares are held by company insiders. Comparatively, 3.9% of Matthews International Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Revlon has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Matthews International Corporation has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Revlon and Matthews International Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Revlon 0 1 0 0 2.00
Matthews International Corporation 0 0 3 0 3.00

Revlon currently has a consensus price target of $16.00, indicating a potential downside of 34.83%. Matthews International Corporation has a consensus price target of $83.50, indicating a potential upside of 34.14%. Given Matthews International Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Matthews International Corporation is more favorable than Revlon.

Dividends

Matthews International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Revlon does not pay a dividend. Matthews International Corporation pays out 28.5% of its earnings in the form of a dividend. Matthews International Corporation has increased its dividend for 5 consecutive years.

Summary

Matthews International Corporation beats Revlon on 12 of the 16 factors compared between the two stocks.

About Revlon

Revlon, Inc. manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company operates through four segments: Consumer, which includes cosmetics, hair color and hair care, beauty tools, anti-perspirant deodorants, fragrances and skincare products; Professional, which includes a line of products sold to hair and nail salons, and professional salon distributors, including hair color, shampoos, conditioners, styling products, nail polishes and nail enhancements; Elizabeth Arden, which include Elizabeth Arden, which produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand and Other, which includes the distribution of prestige, designer and celebrity fragrances, cosmetics and skincare products.

About Matthews International Corporation

Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.

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