Head to Head Contrast: Emerson Electric (EMR) vs. Spectrum Brands Holdings (SPB)
Emerson Electric (NYSE: EMR) and Spectrum Brands Holdings (NYSE:SPB) are both mid-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
This is a summary of current ratings and price targets for Emerson Electric and Spectrum Brands Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spectrum Brands Holdings||0||1||7||0||2.88|
Emerson Electric currently has a consensus price target of $58.23, indicating a potential downside of 1.84%. Spectrum Brands Holdings has a consensus price target of $142.43, indicating a potential upside of 30.01%. Given Spectrum Brands Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Spectrum Brands Holdings is more favorable than Emerson Electric.
Insider and Institutional Ownership
69.4% of Emerson Electric shares are held by institutional investors. Comparatively, 48.4% of Spectrum Brands Holdings shares are held by institutional investors. 0.8% of Emerson Electric shares are held by company insiders. Comparatively, 1.0% of Spectrum Brands Holdings 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.
This table compares Emerson Electric and Spectrum Brands Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spectrum Brands Holdings||5.87%||17.46%||4.45%|
Volatility & Risk
Emerson Electric has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Spectrum Brands Holdings has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Earnings and Valuation
This table compares Emerson Electric and Spectrum Brands Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Emerson Electric||$14.76 billion||2.57||$3.18 billion||$2.25||26.36|
|Spectrum Brands Holdings||$4.94 billion||1.29||$865.80 million||$4.90||22.36|
Emerson Electric has higher revenue and earnings than Spectrum Brands Holdings. Spectrum Brands Holdings is trading at a lower price-to-earnings ratio than Emerson Electric, indicating that it is currently the more affordable of the two stocks.
Emerson Electric pays an annual dividend of $1.92 per share and has a dividend yield of 3.2%. Spectrum Brands Holdings pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Emerson Electric pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spectrum Brands Holdings pays out 34.3% of its earnings in the form of a dividend. Emerson Electric has increased its dividend for 3 consecutive years and Spectrum Brands Holdings has increased its dividend for 60 consecutive years.
Emerson Electric beats Spectrum Brands Holdings on 10 of the 17 factors compared between the two stocks.
About Emerson Electric
Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.
About Spectrum Brands Holdings
Spectrum Brands Holdings, Inc. (SB Holdings) is a diversified global consumer products company. The Company manufactures, markets and/or distributes its products in approximately 160 countries in the North America (NA); Europe, the Middle East and Africa (EMEA); Latin America (LATAM), and Asia-Pacific (APAC) regions. It has five segments: Global Batteries & Appliances (GBA), Global Pet Supplies (PET), Home and Garden (H&G), Hardware & Home Improvement (HHI) and Global Auto Care (GAC). The Company’s GBA segment includes product categories, such as consumer batteries, small appliances and personal care. The Company’s HHI segment includes product categories, such as lockset, plumbing and hardware. The Company’s PET segment’s product categories include aquatics, companion animal and pet food. The Company’s H&G segment’s product categories include controls, household and repellents. The Company’s GAC segment’s product categories include appearance, performance and A/C recharge.
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