Prestige Brand Holdings (NYSE: PBH) and AmerisourceBergen Corporation (Holding Co) (NYSE:ABC) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Prestige Brand Holdings and AmerisourceBergen Corporation (Holding Co), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prestige Brand Holdings 0 1 5 0 2.83
AmerisourceBergen Corporation (Holding Co) 0 4 5 0 2.56

Prestige Brand Holdings presently has a consensus target price of $66.00, indicating a potential upside of 29.59%. AmerisourceBergen Corporation (Holding Co) has a consensus target price of $93.14, indicating a potential upside of 16.08%. Given Prestige Brand Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Prestige Brand Holdings is more favorable than AmerisourceBergen Corporation (Holding Co).

Dividends

AmerisourceBergen Corporation (Holding Co) pays an annual dividend of $1.46 per share and has a dividend yield of 1.8%. Prestige Brand Holdings does not pay a dividend. AmerisourceBergen Corporation (Holding Co) pays out 38.0% of its earnings in the form of a dividend. AmerisourceBergen Corporation (Holding Co) has raised its dividend for 12 consecutive years.

Valuation & Earnings

This table compares Prestige Brand Holdings and AmerisourceBergen Corporation (Holding Co)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prestige Brand Holdings $929.06 million 2.91 $317.46 million $2.03 25.09
AmerisourceBergen Corporation (Holding Co) $151.58 billion 0.12 $2.43 billion $3.84 20.90

AmerisourceBergen Corporation (Holding Co) has higher revenue and earnings than Prestige Brand Holdings. AmerisourceBergen Corporation (Holding Co) is trading at a lower price-to-earnings ratio than Prestige Brand Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Prestige Brand Holdings has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, AmerisourceBergen Corporation (Holding Co) has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Prestige Brand Holdings and AmerisourceBergen Corporation (Holding Co)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prestige Brand Holdings 11.70% 16.06% 3.89%
AmerisourceBergen Corporation (Holding Co) 0.56% 56.07% 3.83%

Insider and Institutional Ownership

98.6% of Prestige Brand Holdings shares are held by institutional investors. Comparatively, 67.7% of AmerisourceBergen Corporation (Holding Co) shares are held by institutional investors. 1.0% of Prestige Brand Holdings shares are held by company insiders. Comparatively, 27.4% of AmerisourceBergen Corporation (Holding Co) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Prestige Brand Holdings beats AmerisourceBergen Corporation (Holding Co) on 9 of the 16 factors compared between the two stocks.

Prestige Brand Holdings Company Profile

Prestige Brands Holdings, Inc. is engaged in the marketing, sales and distribution of over-the-counter healthcare and household cleaning products. The Company operates through three segments: North American Over-the-Counter (OTC) Healthcare; International Over-the-Counter Healthcare, and Household Cleaning. Its portfolio of OTC healthcare products includes core brands, such as DenTek specialty oral care products, Monistat women’s health products, Nix lice treatment, Chloraseptic sore throat treatments, Clear Eyes eye care products, Compound W wart treatments, The Doctor’s NightGuard dental protector, Little Remedies pediatric over-the-counter products, Efferdent denture care products, Luden’s throat drops, Dramamine motion sickness treatment, BC and Goody’s pain relievers, Beano gas prevention, Debrox earwax remover, and Gaviscon antacid. The Company’s portfolio of Household Cleaning brands includes the Chore Boy, Comet and Spic and Span brands.

AmerisourceBergen Corporation (Holding Co) Company Profile

AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers. Servicing healthcare providers in the pharmaceutical supply channel, the Pharmaceutical Distribution segment’s operations provide drug distribution and related services. The Other segment consists of the operations of various segments, including the AmerisourceBergen Consulting Services (ABCS), the World Courier Group, Inc. and the MWI Veterinary Supply, Inc. ABSG operates distribution facilities that focus primarily on complex disease treatment regimens.

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