Newell Brands (NYSE:NWL) and Deswell Industries (NASDAQ:DSWL) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Newell Brands and Deswell Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newell Brands 0 11 3 0 2.21
Deswell Industries 0 0 0 0 N/A

Newell Brands currently has a consensus target price of $25.85, indicating a potential upside of 13.96%. Given Newell Brands’ higher probable upside, research analysts plainly believe Newell Brands is more favorable than Deswell Industries.

Risk and Volatility

Newell Brands has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Deswell Industries has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newell Brands $14.74 billion 0.72 $2.75 billion $2.75 8.25
Deswell Industries $60.67 million 0.83 $6.19 million N/A N/A

Newell Brands has higher revenue and earnings than Deswell Industries.

Profitability

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

Net Margins Return on Equity Return on Assets
Newell Brands -46.92% 9.55% 3.81%
Deswell Industries N/A N/A N/A

Dividends

Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 4.1%. Deswell Industries pays an annual dividend of $0.12 per share and has a dividend yield of 3.8%. Newell Brands pays out 33.5% of its earnings in the form of a dividend. Deswell Industries has raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

98.4% of Newell Brands shares are held by institutional investors. Comparatively, 4.8% of Deswell Industries shares are held by institutional investors. 1.0% of Newell Brands shares are held by company insiders. Comparatively, 39.0% of Deswell Industries shares are held by company 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.

Summary

Newell Brands beats Deswell Industries on 9 of the 14 factors compared between the two stocks.

Newell Brands Company Profile

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company's Live segment offers household products, including kitchen appliances, gourmet cookware, bakeware and cutlery, food storage and home storage products, fresh preserving products, and home fragrance products; and baby gear, infant care, and health products primarily under Aprica, Baby Jogger, Ball, Calphalon, Chesapeake Bay Candle, Crock-Pot, FoodSaver, Graco, Mr. Coffee, NUK, Oster, Rubbermaid, Sistema, Sunbeam, Tigex, WoodWick, and Yankee Candle brands. Its Learn segment offers writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products; and fine writing instruments, labeling solutions, and custom commemorative jewelry and academic regalia primarily under Dymo, Elmer's, Expo, Jostens, Mr. Sketch, Paper Mate, Parker, Prismacolor, Sharpie, Waterman, and X-Acto brands. The company's Work segment offers cleaning and refuse products; hygiene systems; material handling solutions; consumer and commercial totes; and commercial food service and premium tableware products primarily under Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, Spontex, and Waddington brands. Its Play segment offers products for outdoor and outdoor-related activities primarily under Berkley, Coleman, Contigo, Ex Officio, Marmot, Rawlings, and Shakespeare brands. The company's Other segment offers plastic products, including closures, contact lens packaging, medical disposables, plastic cutlery and rigid packaging, beauty products, vacuum cleaning systems, and gaming products primarily under Jarden Plastic Solutions, Jarden Applied Materials, Jarden Zinc Products, Goody, Bicycle, and Rainbow brands. Newell Brands Inc. was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. The company was founded in 1903 and is headquartered in Hoboken, New Jersey.

Deswell Industries Company Profile

Deswell Industries, Inc. manufactures and sells injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. It produces a range of plastic parts and components that are used in the manufacture of consumer and industrial products, which include plastic components of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; and parts for electrical products, such as air-conditioning and ventilators, as well as parts for audio equipment and cases, and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. In addition, it provides electronic products that consist of audio equipment, including digital audio workstations, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; home theatre audio products, such as 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; printed circuit board assemblies; and telecommunication products comprising VoIP keysets for business communications. The company sells its products primarily in the People's Republic of China, the United States, the United Kingdom, Norway, Holland, Hong Kong, and Canada. Deswell Industries, Inc. was founded in 1987 and is based in Macau.

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