Contrasting Acco Brands Corporation (ACCO) & Essendant (ESND)
Acco Brands Corporation (NYSE: ACCO) and Essendant (NASDAQ:ESND) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This table compares Acco Brands Corporation and Essendant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acco Brands Corporation||3.25%||15.03%||4.39%|
This is a breakdown of recent recommendations and price targets for Acco Brands Corporation and Essendant, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acco Brands Corporation||0||0||1||0||3.00|
Acco Brands Corporation currently has a consensus target price of $18.00, indicating a potential upside of 64.38%. Essendant has a consensus target price of $16.50, indicating a potential upside of 40.91%. Given Acco Brands Corporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Acco Brands Corporation is more favorable than Essendant.
Insider and Institutional Ownership
93.1% of Acco Brands Corporation shares are owned by institutional investors. Comparatively, 94.0% of Essendant shares are owned by institutional investors. 4.5% of Acco Brands Corporation shares are owned by insiders. Comparatively, 1.6% of Essendant shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Acco Brands Corporation has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Essendant has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Valuation & Earnings
This table compares Acco Brands Corporation and Essendant’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Acco Brands Corporation||$1.72 billion||0.69||$256.30 million||$0.51||21.47|
|Essendant||$5.19 billion||0.08||$147.50 million||($4.08)||-2.87|
Acco Brands Corporation has higher revenue, but lower earnings than Essendant. Essendant is trading at a lower price-to-earnings ratio than Acco Brands Corporation, indicating that it is currently the more affordable of the two stocks.
Essendant pays an annual dividend of $0.56 per share and has a dividend yield of 4.8%. Acco Brands Corporation does not pay a dividend. Essendant pays out -13.7% of its earnings in the form of a dividend.
Acco Brands Corporation beats Essendant on 12 of the 16 factors compared between the two stocks.
Acco Brands Corporation Company Profile
ACCO Brands Corporation is engaged in designing, marketing and manufacturing of branded business, academic and selected consumer products. The Company operates through three segments: ACCO Brands North America, ACCO Brands International and Computer Products Group. The Company’s brands include Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra and Wilson Jones. The Company’s ACCO Brands North America and ACCO Brands International design, market, source, manufacture and sell traditional office products, academic supplies and calendar products. ACCO Brands North America consists of the United States and Canada, and ACCO Brands International consists of the rest of the world, primarily Northern Europe, Australia, Brazil and Mexico. Its Computer Products Group designs, sources, distributes, markets and sells accessories for laptop and desktop computers and tablets.
Essendant Company Profile
Essendant Inc. (Essendant) is a wholesale distributor of workplace items. The Company’s product portfolio includes Janitorial, Foodservice and Breakroom Supplies (JanSan), Technology Products, Traditional Office Products, Industrial Supplies, Cut Sheet Paper Products, Automotive Products and Office Furniture. It operates principally within the United States, with additional operations in Canada and Dubai, the United Arab Emirates (UAE). As of December 31, 2016, the Company provided access to over 22,000 items in these lines: janitorial supplies (cleaners and cleaning accessories), breakroom items (food and beverage products), foodservice consumables (such as disposable cups, plates and utensils), safety and security items, and paper and packaging supplies. As of December 31, 2016, the Company provided access to approximately 11,000 items, including imaging supplies, data storage, digital cameras, computer accessories and computer hardware items, such as printers and other peripherals.
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