Critical Comparison: The Clorox (CLX) & HENKEL AG&CO. KGAA (HENKY)
The Clorox (NYSE: CLX) and HENKEL AG&CO. KGAA (OTCMKTS:HENKY) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
This table compares The Clorox and HENKEL AG&CO. KGAA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|HENKEL AG&CO. KGAA||12.60%||16.74%||8.91%|
The Clorox has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, HENKEL AG&CO. KGAA has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.
The Clorox pays an annual dividend of $3.36 per share and has a dividend yield of 2.7%. HENKEL AG&CO. KGAA pays an annual dividend of $2.45 per share and has a dividend yield of 1.9%. The Clorox pays out 55.4% of its earnings in the form of a dividend. HENKEL AG&CO. KGAA pays out 37.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HENKEL AG&CO. KGAA has raised its dividend for 40 consecutive years.
This is a summary of current recommendations and price targets for The Clorox and HENKEL AG&CO. KGAA, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|HENKEL AG&CO. KGAA||0||1||1||0||2.50|
The Clorox currently has a consensus price target of $131.62, indicating a potential upside of 4.87%. Given The Clorox’s higher probable upside, research analysts plainly believe The Clorox is more favorable than HENKEL AG&CO. KGAA.
Earnings & Valuation
This table compares The Clorox and HENKEL AG&CO. KGAA’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|The Clorox||$5.97 billion||2.72||$701.00 million||$6.06||20.71|
|HENKEL AG&CO. KGAA||$23.59 billion||1.39||$2.97 billion||$6.55||19.20|
HENKEL AG&CO. KGAA has higher revenue and earnings than The Clorox. HENKEL AG&CO. KGAA is trading at a lower price-to-earnings ratio than The Clorox, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
75.7% of The Clorox shares are owned by institutional investors. Comparatively, 0.1% of HENKEL AG&CO. KGAA shares are owned by institutional investors. 1.0% of The Clorox 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.
The Clorox beats HENKEL AG&CO. KGAA on 10 of the 17 factors compared between the two stocks.
About The Clorox
The Clorox Company is a manufacturer and marketer of consumer and professional products. The Company sells its products primarily through mass retail outlets, e-commerce channels, wholesale distributors and medical supply distributors. The Company operates through four segments: Cleaning, Household, Lifestyle and International. Its Cleaning segment consists of laundry, home care and professional products marketed and sold in the United States. Its Household segment consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Its Lifestyle segment consists of food products, water-filtration systems and filters, and natural personal care products marketed and sold in the United States. Its International segment consists of products sold outside the United States. It markets some of the consumer brand names, such as namesake bleach and cleaning products, Pine-Sol cleaners, Liquid-Plumr clog removers and Kingsford charcoal.
About HENKEL AG&CO. KGAA
Henkel AG & Co. KGaA, together with its subsidiaries, engages in laundry and home care, beauty care, and adhesive technology businesses worldwide. The companys Laundry and Home Care segment offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and laundry care products; hand and automatic dishwashing products; cleaners for bathroom and WC applications; household, glass, and specialty cleaners; and air fresheners and insecticides for household applications. This segment markets its products primarily under the Persil, Purex, and Pril brand names. Its Beauty Care segment offers hair cosmetics; products for body, skin, and oral care; and products for the professional hair salon business. This segment markets its products primarily under the Schwarzkopf, Dial, and Syoss brand names. The companys Adhesive Technologies segment offers industrial and specialty adhesives, sealants, and functional coatings for packaging and consumer goods, transport and metal business, general industry, and electronics, as well as consumers, craftsmen, and building operators. This segment markets its products primarily under the Loctite, Technomelt, and Bonderite brand names. Henkel AG & Co. KGaA was founded in 1876 and is headquartered in Düsseldorf, Germany.
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