Contrasting HRG Group (HRG) & Newell Brands (NWL)
HRG Group (NYSE: HRG) and Newell Brands (NYSE:NWL) are both mid-cap consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. HRG Group does not pay a dividend. Newell Brands pays out 36.9% of its earnings in the form of a dividend.
This is a breakdown of current ratings and price targets for HRG Group and Newell Brands, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newell Brands has a consensus price target of $57.83, suggesting a potential upside of 18.24%. Given Newell Brands’ higher possible upside, analysts clearly believe Newell Brands is more favorable than HRG Group.
This table compares HRG Group and Newell Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
HRG Group has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Valuation and Earnings
This table compares HRG Group and Newell Brands’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HRG Group||$5.00 billion||0.63||$857.70 million||$0.62||25.55|
|Newell Brands||$15.41 billion||1.56||$2.63 billion||$2.49||19.64|
Newell Brands has higher revenue and earnings than HRG Group. Newell Brands is trading at a lower price-to-earnings ratio than HRG Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.4% of HRG Group shares are held by institutional investors. Comparatively, 92.4% of Newell Brands shares are held by institutional investors. 1.2% of HRG Group shares are held by insiders. Comparatively, 1.0% of Newell Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Newell Brands beats HRG Group on 11 of the 16 factors compared between the two stocks.
HRG Group Company Profile
HRG Group, Inc. is a holding company. The Company operates through two segments: Consumer Products and Insurance. The Consumer Products segment consists of the Company’s subsidiary, Spectrum Brands Holdings, Inc. (Spectrum Brands). The Insurance segment includes its subsidiary, Front Street Re (Delaware) Ltd. (Front Street). Through Spectrum Brands, the Company is a diversified global branded consumer products company. The Company offers seven product categories: consumer batteries, small appliances, global pet supplies, home and garden control products, personal care products, hardware and home improvement products and global auto care. Through Front Street, the Company is engaged in the business of providing long-term reinsurance, including reinsurance to the specialty insurance sector of fixed, deferred and payout annuities. The Company’s subsidiary, Fidelity & Guaranty Life (FGL), provides life insurance and annuity products.
Newell Brands Company Profile
Newell Brands Inc. is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle. Writing segment consists of the Writing and Creative Expression business. Home Solutions segment designs, manufactures or sources and distributes a range of consumer products under various brand names. Commercial Products segment designs, manufactures or sources and distributes cleaning and refuse products. Its Baby & Parenting segment designs and distributes infant and juvenile products.
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