Spectrum Brands Holdings (NYSE: SPB) and Kimball Electronics (NASDAQ:KE) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Spectrum Brands Holdings and Kimball Electronics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectrum Brands Holdings 0 1 8 0 2.89
Kimball Electronics 0 0 0 0 N/A

Spectrum Brands Holdings currently has a consensus price target of $140.13, suggesting a potential upside of 33.44%. Given Spectrum Brands Holdings’ higher probable upside, analysts plainly believe Spectrum Brands Holdings is more favorable than Kimball Electronics.

Profitability

This table compares Spectrum Brands Holdings and Kimball Electronics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectrum Brands Holdings 5.87% 17.46% 4.45%
Kimball Electronics 3.40% 9.63% 5.95%

Insider and Institutional Ownership

45.3% of Spectrum Brands Holdings shares are owned by institutional investors. Comparatively, 55.9% of Kimball Electronics shares are owned by institutional investors. 1.0% of Spectrum Brands Holdings shares are owned by insiders. Comparatively, 3.9% of Kimball Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Spectrum Brands Holdings pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Kimball Electronics does not pay a dividend. Spectrum Brands Holdings pays out 34.3% of its earnings in the form of a dividend. Spectrum Brands Holdings has increased its dividend for 3 consecutive years.

Volatility and Risk

Spectrum Brands Holdings has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Kimball Electronics has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Spectrum Brands Holdings and Kimball Electronics’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Spectrum Brands Holdings $5.04 billion 1.21 $357.10 million $4.90 21.43
Kimball Electronics $930.91 million 0.58 $34.17 million $1.19 16.76

Spectrum Brands Holdings has higher revenue and earnings than Kimball Electronics. Kimball Electronics is trading at a lower price-to-earnings ratio than Spectrum Brands Holdings, indicating that it is currently the more affordable of the two stocks.

Summary

Spectrum Brands Holdings beats Kimball Electronics on 11 of the 16 factors compared between the two stocks.

About Spectrum Brands Holdings

Spectrum Brands Holdings, Inc. (SB Holdings) is a diversified global consumer products company. The Company manufactures, markets and/or distributes its products in approximately 160 countries in the North America (NA); Europe, the Middle East and Africa (EMEA); Latin America (LATAM), and Asia-Pacific (APAC) regions. It has five segments: Global Batteries & Appliances (GBA), Global Pet Supplies (PET), Home and Garden (H&G), Hardware & Home Improvement (HHI) and Global Auto Care (GAC). The Company’s GBA segment includes product categories, such as consumer batteries, small appliances and personal care. The Company’s HHI segment includes product categories, such as lockset, plumbing and hardware. The Company’s PET segment’s product categories include aquatics, companion animal and pet food. The Company’s H&G segment’s product categories include controls, household and repellents. The Company’s GAC segment’s product categories include appearance, performance and A/C recharge.

About Kimball Electronics

Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.

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