Newell Brands (NWL) versus The Middleby Corporation (NASDAQ:MIDD) Critical Contrast
Newell Brands (NYSE: NWL) and The Middleby Corporation (NASDAQ:MIDD) are both mid-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitabiliy.
Volatility and Risk
Newell Brands has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, The Middleby Corporation has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.
This is a breakdown of current ratings for Newell Brands and The Middleby Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Middleby Corporation||0||4||2||0||2.33|
Newell Brands presently has a consensus target price of $58.43, suggesting a potential upside of 10.45%. The Middleby Corporation has a consensus target price of $141.60, suggesting a potential upside of 9.03%. Given Newell Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Newell Brands is more favorable than The Middleby Corporation.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 1.7%. The Middleby Corporation does not pay a dividend. Newell Brands pays out 39.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Newell Brands and The Middleby Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Newell Brands||$15.22 billion||1.68||$2.56 billion||$2.33||22.70|
|The Middleby Corporation||$2.28 billion||3.28||$529.93 million||$5.26||24.69|
Newell Brands has higher revenue and earnings than The Middleby Corporation. Newell Brands is trading at a lower price-to-earnings ratio than The Middleby Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
94.3% of Newell Brands shares are owned by institutional investors. Comparatively, 95.6% of The Middleby Corporation shares are owned by institutional investors. 1.0% of Newell Brands shares are owned by insiders. Comparatively, 2.0% of The Middleby Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Newell Brands and The Middleby Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Middleby Corporation||13.16%||23.45%||10.46%|
The Middleby Corporation beats Newell Brands on 10 of the 17 factors compared between the two stocks.
About Newell Brands
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.
About The Middleby Corporation
The Middleby Corporation is engaged in the design, manufacture and sale of commercial foodservice, food processing equipment and residential kitchen equipment. The Company operates in three segments: the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. It is also engaged in the design, manufacture, marketing, distribution and service of a range of foodservice equipment used in commercial restaurants and institutional kitchens; food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and kitchen equipment, including ranges, ovens, refrigerators, ventilation and dishwashers used in the residential market. It manufactured and assembled the equipment at 28 facilities in the United States, and 23 international manufacturing facilities as of December 31, 2016. Its brands include Anets, Beech, Blodgett, Blodgett Combi, Stewart Systems, Mercury, Rangemaster, Rayburn and Redfyre.
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