Analyzing Church & Dwight (CHD) & Zep (ZEP)
Church & Dwight (NYSE: CHD) and Zep (NYSE:ZEP) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitabiliy, dividends, valuation, analyst recommendations and institutional ownership.
Institutional & Insider Ownership
82.4% of Church & Dwight shares are owned by institutional investors. 2.0% of Church & Dwight shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Church & Dwight and Zep’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Church & Dwight||13.56%||24.11%||11.13%|
Church & Dwight pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. Zep does not pay a dividend. Church & Dwight pays out 41.6% of its earnings in the form of a dividend. Church & Dwight has increased its dividend for 4 consecutive years and Zep has increased its dividend for 11 consecutive years.
This is a summary of recent recommendations for Church & Dwight and Zep, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Church & Dwight||3||8||1||0||1.83|
Church & Dwight presently has a consensus price target of $50.70, suggesting a potential downside of 3.65%. Given Church & Dwight’s higher probable upside, equities research analysts clearly believe Church & Dwight is more favorable than Zep.
Valuation and Earnings
This table compares Church & Dwight and Zep’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Church & Dwight||$3.52 billion||3.73||$854.70 million||$1.83||28.83|
Church & Dwight has higher revenue and earnings than Zep.
Church & Dwight beats Zep on 9 of the 11 factors compared between the two stocks.
Church & Dwight Company Profile
Church & Dwight Co., Inc. develops, manufactures and markets a range of household, personal care and specialty products. The Company’s segments include Consumer Domestic, Consumer International and Specialty Products Division (SPD). The Company also sells specialty products to industrial customers and distributors. The Consumer Domestic segment includes various brands, as well as other household and personal care products, such as KABOOM cleaning products, ARRID antiperspirant, CLOSE-UP and AIM toothpastes and SIMPLY SALINE nasal saline moisturizer. The Consumer International segment markets a range of personal care products, household and over-the-counter products in international markets, including Canada, France, China, Australia, the United Kingdom, Mexico and Brazil. The Company’s SPD segment is a producer of sodium bicarbonate, which it sells together with other specialty inorganic chemicals for various industrial, institutional, medical and food applications.
Zep Company Profile
Zep Inc. is a consumable chemical packaged goods company, providing a variety of chemicals and related products and services that help professionals maintain, clean and protect their assets. The Company markets its products and services under brand names, including Zep, Zep Professional, Zep Commercial, Zep Automotive and other Zep Inc. brands. Its product portfolio, which is produced using more than 4,000 formulations, includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, pest- and weed-control products, air-care products and delivery systems and a variety of automotive maintenance chemicals. The Company manufactures its products at nine facilities located in the United States, Canada, the Netherlands, Italy, and United Kingdom.
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