Reviewing Reynolds Consumer Products (NASDAQ:REYN) & Oil-Dri Corporation Of America (NYSE:ODC)

Oil-Dri Corporation Of America (NYSE:ODC) and Reynolds Consumer Products (NASDAQ:REYN) 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, dividends, profitability, risk, earnings, valuation and institutional ownership.

Dividends

Oil-Dri Corporation Of America pays an annual dividend of $0.90 per share and has a dividend yield of 1.0%. Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 4.1%. Oil-Dri Corporation Of America pays out 23.1% of its earnings in the form of a dividend. Reynolds Consumer Products pays out 56.1% 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. Oil-Dri Corporation Of America has raised its dividend for 11 consecutive years.

Profitability

This table compares Oil-Dri Corporation Of America and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oil-Dri Corporation Of America	11.35%	20.53%	14.17%
Reynolds Consumer Products	9.11%	16.03%	7.28%

Institutional and Insider Ownership

49.0% of Oil-Dri Corporation Of America shares are owned by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are owned by institutional investors. 11.7% of Oil-Dri Corporation Of America shares are owned by company insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Oil-Dri Corporation Of America and Reynolds Consumer Products”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oil-Dri Corporation Of America	$485.57 million	2.69	$54.00 million	$3.89	23.17
Reynolds Consumer Products	$3.79 billion	1.24	$301.00 million	$1.64	13.61

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

Risk & Volatility

Oil-Dri Corporation Of America has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Oil-Dri Corporation Of America and Reynolds Consumer Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oil-Dri Corporation Of America	0	0	1	0	3.00
Reynolds Consumer Products	0	7	1	0	2.12

Reynolds Consumer Products has a consensus price target of $25.60, suggesting a potential upside of 14.70%. Given Reynolds Consumer Products’ higher possible upside, analysts clearly believe Reynolds Consumer Products is more favorable than Oil-Dri Corporation Of America.

Summary

Oil-Dri Corporation Of America beats Reynolds Consumer Products on 12 of the 16 factors compared between the two stocks.

About Oil-Dri Corporation Of America

Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.

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.