PZ Cussons (OTCMKTS:PZCUY) and Reynolds Consumer Products (NASDAQ:REYN) Head-To-Head Analysis

Reynolds Consumer Products (NASDAQ:REYN) and PZ Cussons (OTCMKTS:PZCUY) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Valuation & Earnings

This table compares Reynolds Consumer Products and PZ Cussons”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.72 billion	1.48	$301.00 million	$1.64	15.93
PZ Cussons	N/A	N/A	N/A	$0.43	3.53

Reynolds Consumer Products has higher revenue and earnings than PZ Cussons. PZ Cussons is trading at a lower price-to-earnings ratio than Reynolds Consumer Products, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Reynolds Consumer Products and PZ Cussons, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	7	1	0	2.12
PZ Cussons	0	0	0	0	0.00

Reynolds Consumer Products presently has a consensus target price of $25.60, suggesting a potential downside of 2.03%. Given Reynolds Consumer Products’ stronger consensus rating and higher probable upside, research analysts plainly believe Reynolds Consumer Products is more favorable than PZ Cussons.

Dividends

Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 3.5%. PZ Cussons pays an annual dividend of $0.09 per share and has a dividend yield of 6.0%. Reynolds Consumer Products pays out 56.1% of its earnings in the form of a dividend. PZ Cussons pays out 21.1% 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. PZ Cussons is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Reynolds Consumer Products and PZ Cussons’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reynolds Consumer Products	9.11%	16.03%	7.28%
PZ Cussons	N/A	N/A	N/A

Insider & Institutional Ownership

26.8% of Reynolds Consumer Products shares are held by institutional investors. 0.4% of Reynolds Consumer Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Reynolds Consumer Products beats PZ Cussons on 11 of the 13 factors compared between the two stocks.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.

About PZ Cussons

PZ Cussons plc manufactures, distributes, markets, and sells baby, beauty, and hygiene products in Europe, the Americas, the Asia Pacific, and Africa. The company offers toiletries, pharmaceuticals, electrical goods, edible oils, fats and spreads, nutritional products, shampoos, body washes, toothpastes, toothbrushes, skin and hair care products, food pouches, cereals, snacks, flavors, and fragrances; beauty soaps, lotions, wipes, creams, shower gels, foam-bursts, bar soaps, deodorants, bath infusions, handwashes, and conditioners; ointments; dishwashing liquids, dishwasher tablets, dishwasher gels, dishwasher capsules, rinse aids, liquid detergents, laundry soaps, and laundry solutions; and cooking and vegetable oils. It also provides refrigerators, freezers, air conditioners, washing machines, microwaves, table and standing cookers, generators, stabilizers, TVs, DVDs, and home theatres. The company sells its products under the Cussons Kids, Rafferty's Garden, Cussons Baby, St.Tropez, Sanctuary Spa, Fudge Professional, Charles Worthington, Fudge Urban, Venus for You, Carex, Imperial Leather, Original Source, Premier Cool, Joy, Childs Farm, Haier Thermocool, Morning Fresh, Bayley's of Bond Street, Canoe, Zip, Robb, Radiant, Mamador, and Devon King's brand names. The company was formerly known as Paterson Zochonis Plc and changed its name to PZ Cussons Plc in 2002. PZ Cussons plc was incorporated in 1884 and is headquartered in Manchester, the United Kingdom.