WD-40 Company (WDFC) and Clorox Company (The) (CLX) Head-To-Head Analysis
Clorox Company (The) (NYSE: CLX) and WD-40 Company (NASDAQ:WDFC) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitabiliy.
Volatility and Risk
Clorox Company (The) has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, WD-40 Company has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Earnings & Valuation
This table compares Clorox Company (The) and WD-40 Company’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Clorox Company (The)||$5.93 billion||2.86||$1.22 billion||$5.07||26.02|
|WD-40 Company||$381.10 million||3.95||$80.20 million||$3.70||29.00|
Clorox Company (The) has higher revenue and earnings than WD-40 Company. Clorox Company (The) is trading at a lower price-to-earnings ratio than WD-40 Company, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Clorox Company (The) and WD-40 Company, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clorox Company (The)||0||10||2||0||2.17|
Clorox Company (The) presently has a consensus price target of $126.00, suggesting a potential downside of 4.47%. WD-40 Company has a consensus price target of $108.67, suggesting a potential upside of 1.27%. Given WD-40 Company’s higher probable upside, analysts clearly believe WD-40 Company is more favorable than Clorox Company (The).
This table compares Clorox Company (The) and WD-40 Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clorox Company (The)||11.22%||215.99%||14.97%|
Clorox Company (The) pays an annual dividend of $3.20 per share and has a dividend yield of 2.4%. WD-40 Company pays an annual dividend of $1.96 per share and has a dividend yield of 1.8%. Clorox Company (The) pays out 63.1% of its earnings in the form of a dividend. WD-40 Company pays out 53.0% 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. WD-40 Company has increased its dividend for 39 consecutive years.
Institutional and Insider Ownership
70.8% of Clorox Company (The) shares are held by institutional investors. Comparatively, 82.3% of WD-40 Company shares are held by institutional investors. 0.7% of Clorox Company (The) shares are held by company insiders. Comparatively, 3.9% of WD-40 Company shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
WD-40 Company beats Clorox Company (The) on 10 of the 17 factors compared between the two stocks.
About Clorox Company (The)
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 WD-40 Company
WD-40 Company is a global company engaged in developing and selling products, which solve problems in workshops, factories and homes. The Company’s segments include the Americas; Europe, Middle East and Africa (EMEA), and Asia-Pacific. The Company’s Americas segment includes the United States, Canada and Latin America. The EMEA segment includes countries in Europe, the Middle East, Africa and India. The Asia-Pacific segment includes Australia, China and other countries in the Asia region. The Company has two product groups, which include maintenance products and homecare and cleaning products. As of August 31, 2016, the Company marketed and sold its products in more than 176 countries and territories around the world primarily through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sport retailers, independent bike dealers, online retailers and industrial distributors and suppliers.
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