Financial Analysis: Tokyo Lifestyle (NASDAQ:TKLF) and Newell Brands (NASDAQ:NWL)

Newell Brands (NASDAQ:NWL) and Tokyo Lifestyle (NASDAQ:TKLF) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Profitability

This table compares Newell Brands and Tokyo Lifestyle’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%
Tokyo Lifestyle	N/A	N/A	N/A

Risk and Volatility

Newell Brands has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Newell Brands and Tokyo Lifestyle, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	1	6	3	0	2.20
Tokyo Lifestyle	1	0	0	0	1.00

Newell Brands currently has a consensus target price of $4.92, indicating a potential upside of 20.51%. Given Newell Brands’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Newell Brands is more favorable than Tokyo Lifestyle.

Earnings and Valuation

This table compares Newell Brands and Tokyo Lifestyle”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.20 billion	0.24	-$285.00 million	($0.68)	-6.00
Tokyo Lifestyle	$302.54 million	0.03	$6.64 million	N/A	N/A

Tokyo Lifestyle has lower revenue, but higher earnings than Newell Brands.

Dividends

Newell Brands pays an annual dividend of $0.28 per share and has a dividend yield of 6.9%. Tokyo Lifestyle pays an annual dividend of $0.08 per share and has a dividend yield of 3.6%. Newell Brands pays out -41.2% of its earnings in the form of a dividend.

Institutional & Insider Ownership

92.5% of Newell Brands shares are held by institutional investors. 1.6% of Newell Brands shares are held by insiders. Comparatively, 75.4% of Tokyo Lifestyle shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Newell Brands beats Tokyo Lifestyle on 11 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 Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.