Critical Contrast: Swatch Group (OTCMKTS:SWGAY) and Newell Brands (NASDAQ:NWL)

Swatch Group (OTCMKTS:SWGAY) and Newell Brands (NASDAQ:NWL) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Dividends

Swatch Group pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Newell Brands pays an annual dividend of $0.28 per share and has a dividend yield of 7.3%. Newell Brands pays out -41.8% of its earnings in the form of a dividend.

Profitability

This table compares Swatch Group and Newell Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swatch Group	N/A	N/A	N/A
Newell Brands	-3.91%	8.89%	2.03%

Insider & Institutional Ownership

92.5% of Newell Brands shares are held by institutional investors. 1.6% of Newell Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Swatch Group and Newell Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swatch Group	$7.58 billion	4.04	$3.62 million	N/A	N/A
Newell Brands	$7.20 billion	0.23	-$285.00 million	($0.67)	-5.73

Swatch Group has higher revenue and earnings than Newell Brands.

Volatility and Risk

Swatch Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Swatch Group and Newell Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swatch Group	0	3	0	0	2.00
Newell Brands	1	6	3	0	2.20

Newell Brands has a consensus price target of $5.06, suggesting a potential upside of 31.66%. Given Newell Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Newell Brands is more favorable than Swatch Group.

Summary

Newell Brands beats Swatch Group on 10 of the 14 factors compared between the two stocks.

About Swatch Group

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. The company operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment engages in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials, watch hands, bracelets, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate, real estate management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

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.