Libbey (NYSE: LBY) and Newell Brands (NYSE:NWL) are both appliances, tools & housewares – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Libbey and Newell Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Libbey -41.83% -290.54% -40.97%
Newell Brands 8.34% 11.52% 4.14%

Analyst Ratings

This is a summary of recent recommendations and price targets for Libbey and Newell Brands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Libbey 0 0 0 0 N/A
Newell Brands 0 6 7 0 2.54

Newell Brands has a consensus price target of $47.92, indicating a potential upside of 63.54%. Given Newell Brands’ higher possible upside, analysts clearly believe Newell Brands is more favorable than Libbey.

Valuation and Earnings

This table compares Libbey and Newell Brands’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Libbey N/A N/A N/A ($4.01) -1.88
Newell Brands $13.26 billion 1.08 $527.80 million $2.59 11.31

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

Dividends

Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Libbey does not pay a dividend. Newell Brands pays out 35.5% of its earnings in the form of a dividend.

Insider and Institutional Ownership

92.0% of Newell Brands shares are owned by institutional investors. 1.0% of Newell Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Libbey has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Summary

Newell Brands beats Libbey on 11 of the 12 factors compared between the two stocks.

Libbey Company Profile

Libbey Inc. is engaged in the design, production and sale of tableware and other products. The Company’s segments are U.S. & Canada; Latin America; Europe, the Middle East and Africa (EMEA) and Other. The U.S. & Canada segment includes sales of manufactured and sourced tableware having an end market destination in the United States and Canada, excluding glass products for original equipment manufacturers (OEMs), which remain in the Latin America segment. The Latin America segment includes primarily sales of manufactured and sourced glass tableware having an end market destination in Latin America, including glass products for OEMs that have an end market destination outside of Latin America. The EMEA segment includes primarily sales of manufactured and sourced glass tableware having an end market destination in Europe, the Middle East and Africa. The Other segment includes primarily sales of manufactured and sourced glass tableware having an end market destination in Asia Pacific.

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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