Prestige Brand Holdings (NYSE: PBH) and AmerisourceBergen Corporation (Holding Co) (NYSE:ABC) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitabiliy, dividends and institutional ownership.

Analyst Ratings

This is a summary of current ratings for Prestige Brand Holdings and AmerisourceBergen Corporation (Holding Co), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prestige Brand Holdings 0 1 6 0 2.86
AmerisourceBergen Corporation (Holding Co) 0 4 5 0 2.56

Prestige Brand Holdings currently has a consensus price target of $64.83, suggesting a potential upside of 23.40%. AmerisourceBergen Corporation (Holding Co) has a consensus price target of $93.14, suggesting a potential upside of 15.95%. Given Prestige Brand Holdings’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Prestige Brand Holdings is more favorable than AmerisourceBergen Corporation (Holding Co).

Risk & Volatility

Prestige Brand Holdings has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, AmerisourceBergen Corporation (Holding Co) has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Prestige Brand Holdings and AmerisourceBergen Corporation (Holding Co)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prestige Brand Holdings 11.70% 16.06% 3.89%
AmerisourceBergen Corporation (Holding Co) 0.56% 56.07% 3.83%

Earnings and Valuation

This table compares Prestige Brand Holdings and AmerisourceBergen Corporation (Holding Co)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prestige Brand Holdings $882.06 million 3.16 $304.43 million $2.03 25.88
AmerisourceBergen Corporation (Holding Co) $149.76 billion 0.12 $2.34 billion $3.84 20.92

AmerisourceBergen Corporation (Holding Co) has higher revenue and earnings than Prestige Brand Holdings. AmerisourceBergen Corporation (Holding Co) is trading at a lower price-to-earnings ratio than Prestige Brand Holdings, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

98.2% of Prestige Brand Holdings shares are owned by institutional investors. Comparatively, 68.9% of AmerisourceBergen Corporation (Holding Co) shares are owned by institutional investors. 1.0% of Prestige Brand Holdings shares are owned by insiders. Comparatively, 27.4% of AmerisourceBergen Corporation (Holding Co) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

AmerisourceBergen Corporation (Holding Co) pays an annual dividend of $1.46 per share and has a dividend yield of 1.8%. Prestige Brand Holdings does not pay a dividend. AmerisourceBergen Corporation (Holding Co) pays out 38.0% of its earnings in the form of a dividend. AmerisourceBergen Corporation (Holding Co) has increased its dividend for 12 consecutive years.

Summary

Prestige Brand Holdings beats AmerisourceBergen Corporation (Holding Co) on 10 of the 17 factors compared between the two stocks.

About Prestige Brand Holdings

Prestige Brands Holdings, Inc. is engaged in the marketing, sales and distribution of over-the-counter healthcare and household cleaning products. The Company operates through three segments: North American Over-the-Counter (OTC) Healthcare; International Over-the-Counter Healthcare, and Household Cleaning. Its portfolio of OTC healthcare products includes core brands, such as DenTek specialty oral care products, Monistat women’s health products, Nix lice treatment, Chloraseptic sore throat treatments, Clear Eyes eye care products, Compound W wart treatments, The Doctor’s NightGuard dental protector, Little Remedies pediatric over-the-counter products, Efferdent denture care products, Luden’s throat drops, Dramamine motion sickness treatment, BC and Goody’s pain relievers, Beano gas prevention, Debrox earwax remover, and Gaviscon antacid. The Company’s portfolio of Household Cleaning brands includes the Chore Boy, Comet and Spic and Span brands.

About AmerisourceBergen Corporation (Holding Co)

AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers. Servicing healthcare providers in the pharmaceutical supply channel, the Pharmaceutical Distribution segment’s operations provide drug distribution and related services. The Other segment consists of the operations of various segments, including the AmerisourceBergen Consulting Services (ABCS), the World Courier Group, Inc. and the MWI Veterinary Supply, Inc. ABSG operates distribution facilities that focus primarily on complex disease treatment regimens.

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