KAO (OTCMKTS: KCRPY) and Energizer (NYSE:ENR) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares KAO and Energizer’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KAO N/A N/A N/A
Energizer 9.40% 274.69% 10.55%

Risk and Volatility

KAO has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Energizer has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Valuation & Earnings

This table compares KAO and Energizer’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KAO $13.29 billion 2.60 $1.31 billion N/A N/A
Energizer $1.76 billion 1.78 $201.50 million $2.68 19.49

KAO has higher revenue and earnings than Energizer.

Analyst Recommendations

This is a summary of current ratings and recommmendations for KAO and Energizer, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KAO 0 0 0 0 N/A
Energizer 1 3 4 0 2.38

Energizer has a consensus price target of $60.29, indicating a potential upside of 15.40%. Given Energizer’s higher probable upside, analysts clearly believe Energizer is more favorable than KAO.

Insider & Institutional Ownership

0.1% of KAO shares are owned by institutional investors. Comparatively, 97.2% of Energizer shares are owned by institutional investors. 1.8% of Energizer shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

KAO pays an annual dividend of $0.89 per share and has a dividend yield of 1.3%. Energizer pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. Energizer pays out 43.3% of its earnings in the form of a dividend.

Summary

Energizer beats KAO on 9 of the 14 factors compared between the two stocks.

KAO Company Profile

Kao Corporation is engaged in the consumer product business and the chemical business. The Company operates through four segments: the Beauty Care Business, the Human Health Care Business, the Fabric and Home Care Business (collectively, the Consumer Products business), and the Chemical business. The Beauty Care Business segment manufactures and sells cosmetics, skin care and hair care products. The Human Health Care Business segment manufactures and sells food and beverage, sanitary and personal health products. The Fabric and Home Care Business segment manufactures and sells fabric care and home care products, and also offers laundry detergents and fabric treatments and products for kitchen, bath, toilet and living room care. The Chemical Business segment manufactures and sells oleo chemicals, performance chemicals and specialty chemicals. It offers brands, such as Kanebo, Sofina and Molton Brown, Merries, Clearclean and Magiclean.

Energizer Company Profile

Energizer Holdings, Inc. is a manufacturer, marketer and distributor of household batteries, specialty batteries and lighting products. The Company is a designer and marketer of automotive fragrance and appearance products. It operates through four geographic segments: North America, which consists of the United States and Canada; Latin America, which includes its markets in Mexico, the Caribbean, Central America and South America; Europe, the Middle East and Africa (EMEA), and Asia Pacific, which consists of its markets in Asia, Australia and New Zealand. The Company offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions. These products are sold under the Energizer and Eveready brands in the performance, premium and price segments and include primary, rechargeable, specialty and hearing aid products. It manufactures, distributes and markets lighting products, including headlights, lanterns, kid’s lights and area lights.

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