Energizer (NYSE: EPC) and Matthews International (NASDAQ:MATW) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Energizer 0.25% 12.54% 5.15%
Matthews International 4.83% 15.77% 5.30%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energizer $2.30 billion 1.39 $5.70 million $0.06 948.50
Matthews International $1.52 billion 1.16 $74.36 million $2.29 23.80

Matthews International has lower revenue, but higher earnings than Energizer. Matthews International is trading at a lower price-to-earnings ratio than Energizer, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Energizer has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Matthews International has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Energizer and Matthews International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energizer 1 6 3 0 2.20
Matthews International 0 0 3 0 3.00

Energizer presently has a consensus target price of $75.22, suggesting a potential upside of 32.18%. Matthews International has a consensus target price of $83.50, suggesting a potential upside of 53.21%. Given Matthews International’s stronger consensus rating and higher possible upside, analysts clearly believe Matthews International is more favorable than Energizer.

Dividends

Matthews International pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. Energizer does not pay a dividend. Matthews International pays out 33.2% of its earnings in the form of a dividend. Energizer has raised its dividend for 5 consecutive years.

Institutional & Insider Ownership

90.2% of Energizer shares are held by institutional investors. Comparatively, 78.6% of Matthews International shares are held by institutional investors. 0.6% of Energizer shares are held by company insiders. Comparatively, 4.6% of Matthews International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Matthews International beats Energizer on 11 of the 16 factors compared between the two stocks.

Energizer Company Profile

Edgewell Personal Care Company is a manufacturer and marketer of personal care products in the wet shave, sun and skin care, feminine care and infant care categories. As of September 30, 2016, the Company had a portfolio of over 25 brands. It manages its business in four segments: Wet Shave, Sun and Skin Care, Feminine Care and All Other. Its Wet shave products are sold under the Schick, Wilkinson Sword, Edge, Skintimate, Shave Guard and Personna brand names. Its Sun and Skin Care products are sold under the Banana Boat, Hawaiian Tropic, Wet Ones and Playtex brand names and offers Wet Ones, portable hand wipes category, and Playtex household gloves, the branded household glove in the United States. Its Feminine Care segment markets its products under the Playtex, Stayfree, Carefree and o.b. brands and markets pads and liners. Its All Other segment includes infant care, pet care and miscellaneous other products.

Matthews International Company Profile

Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.

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