Analyzing Reynolds Consumer Products (NASDAQ:REYN) and Church & Dwight (NYSE:CHD)

Reynolds Consumer Products (NASDAQ:REYN) and Church & Dwight (NYSE:CHD) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Institutional & Insider Ownership

26.8% of Reynolds Consumer Products shares are owned by institutional investors. Comparatively, 86.6% of Church & Dwight shares are owned by institutional investors. 0.4% of Reynolds Consumer Products shares are owned by insiders. Comparatively, 2.0% of Church & Dwight shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Reynolds Consumer Products has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Church & Dwight has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Earnings & Valuation

This table compares Reynolds Consumer Products and Church & Dwight”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.72 billion	1.39	$301.00 million	$1.53	16.01
Church & Dwight	$6.20 billion	4.25	$736.80 million	$3.25	34.35

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

Dividends

Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. Church & Dwight pays an annual dividend of $1.23 per share and has a dividend yield of 1.1%. Reynolds Consumer Products pays out 60.1% of its earnings in the form of a dividend. Church & Dwight pays out 37.8% 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. Church & Dwight has raised its dividend for 29 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Reynolds Consumer Products and Church & Dwight, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	7	1	0	2.12
Church & Dwight	1	8	8	0	2.41

Reynolds Consumer Products currently has a consensus price target of $25.20, suggesting a potential upside of 2.86%. Church & Dwight has a consensus price target of $108.44, suggesting a potential downside of 2.85%. Given Reynolds Consumer Products’ higher possible upside, equities research analysts plainly believe Reynolds Consumer Products is more favorable than Church & Dwight.

Profitability

This table compares Reynolds Consumer Products and Church & Dwight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reynolds Consumer Products	8.53%	15.55%	7.10%
Church & Dwight	12.41%	20.28%	9.49%

Summary

Church & Dwight beats Reynolds Consumer Products on 14 of the 17 factors compared between the two stocks.

About Reynolds Consumer Products

Reynolds Consumer Products manufactures and markets household products used for food preparation and storage, waste management, and foodservice. Its portfolio includes aluminum foil, parchment paper, baking products, food-storage bags and containers, trash bags, and disposable tableware. The company sells products under brands including Reynolds, Hefty, and Presto, as well as through private-label offerings. Its products are primarily sold in the United States and Canada through retailers and other distribution channels.

About Church & Dwight

Church & Dwight is a consumer products company whose history traces to 1846, when John Dwight and Austin Church began producing baking soda. The company is best known for its ARM & HAMMER brand and sells household, personal care, and specialty products under a portfolio of owned brands. Its products include laundry detergents and cleaners, oral care items, cat litter, deodorants, condoms, pregnancy and ovulation tests, hair-removal products, and water flossers. Brands include OxiClean, Trojan, First Response, Nair, Waterpik, and TheraBreath, alongside ARM & HAMMER.