Newell Brands (NASDAQ:NWL – Get Free Report) and Yatsen (NYSE:YSG – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Newell Brands and Yatsen, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newell Brands | 1 | 5 | 4 | 0 | 2.30 |
| Yatsen | 1 | 0 | 0 | 0 | 1.00 |
Newell Brands currently has a consensus price target of $6.11, suggesting a potential upside of 44.13%. Given Newell Brands’ stronger consensus rating and higher probable upside, research analysts plainly believe Newell Brands is more favorable than Yatsen.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newell Brands | $7.20 billion | 0.25 | -$285.00 million | ($0.68) | -6.24 |
| Yatsen | $614.62 million | 0.58 | -$97.02 million | ($0.13) | -28.92 |
Yatsen has lower revenue, but higher earnings than Newell Brands. Yatsen is trading at a lower price-to-earnings ratio than Newell Brands, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.5% of Newell Brands shares are owned by institutional investors. 0.7% of Newell Brands shares are owned by company insiders. Comparatively, 29.0% of Yatsen shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Newell Brands and Yatsen’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newell Brands | -3.96% | 9.17% | 2.14% |
| Yatsen | -1.87% | -2.65% | -2.04% |
Risk and Volatility
Newell Brands has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Yatsen has a beta of -2.06, meaning that its share price is 306% less volatile than the S&P 500.
Summary
Newell Brands beats Yatsen on 9 of the 14 factors compared between the two stocks.
About Newell Brands
Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.
About Yatsen
Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. The company offers color cosmetics for lips, eyes, and face; skin care products, including face serums and creams, eye creams, masks, toners, makeup removers, cleansers, ampoules, and anti-acne patches; and beauty tools and kits, sunscreen products, and beauty devices. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
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