Colruyt (OTCMKTS:CUYTY) versus Spectrum Brands (NYSE:SPB) Critical Analysis

Spectrum Brands (NYSE:SPB) and Colruyt (OTCMKTS:CUYTY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Institutional & Insider Ownership

0.0% of Colruyt shares are held by institutional investors. 3.9% of Spectrum Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Spectrum Brands and Colruyt, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectrum Brands	0	2	5	0	2.71
Colruyt	1	1	0	0	1.50

Spectrum Brands currently has a consensus price target of $83.00, indicating a potential upside of 9.55%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe Spectrum Brands is more favorable than Colruyt.

Risk & Volatility

Spectrum Brands has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Colruyt has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Spectrum Brands and Colruyt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spectrum Brands	3.76%	7.65%	4.18%
Colruyt	N/A	N/A	N/A

Dividends

Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 2.5%. Colruyt pays an annual dividend of $0.21 per share and has a dividend yield of 2.2%. Spectrum Brands pays out 43.4% of its earnings in the form of a dividend. Spectrum Brands has increased its dividend for 1 consecutive years. Spectrum Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Spectrum Brands and Colruyt”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectrum Brands	$2.81 billion	0.63	$99.70 million	$4.33	17.50
Colruyt	$11.77 billion	0.38	$362.36 million	N/A	N/A

Colruyt has higher revenue and earnings than Spectrum Brands.

Summary

Spectrum Brands beats Colruyt on 10 of the 15 factors compared between the two stocks.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.

About Colruyt

Colruyt Group N.V., together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, Luxembourg, and internationally. It operates through three segments: Retail, Wholesale and Foodservice, and Other Activities. The company provides groceries, fresh products, dry products, and frozen and non-food products; and operates CNG, hydrogen filling, and charging stations. It also provides printing and document management solutions; and develops, constructs, operates, maintains, and finances wind energy projects. The company offers its products and services under the Bike Republic, Bio-Planet, Boni Selection, Collect&Go, Colruyt Group Academy, Colruyt Lowest Prices, Colruyt Prix Qualité, Cru, DATS 24, Dreambaby, Dreamland, Everyday, Graindor, Kangourou, Okay, Spar Colruyt Group, Xtra, Jims, Newpharma, The Fashion Society, Codifrance, Colex, Solucious, Spar For You, and Symeta Hybrid brands. It provides its products and services to wholesalers, commercial customers, and affiliated independent merchants, as well as schools, care homes, the hospitality sector, etc. The company was formerly known as Etn. Fr. Colruyt NV and changed its name to Colruyt Group N.V. in October 2023. The company was founded in 1928 and is headquartered in Halle, Belgium.