Head-To-Head Analysis: Newell Brands (NWL) & NACCO Industries (NC)
Newell Brands (NYSE: NWL) and NACCO Industries (NYSE:NC) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
92.4% of Newell Brands shares are held by institutional investors. Comparatively, 49.2% of NACCO Industries shares are held by institutional investors. 1.0% of Newell Brands shares are held by company insiders. Comparatively, 30.6% of NACCO Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. NACCO Industries pays an annual dividend of $1.09 per share and has a dividend yield of 1.5%. Newell Brands pays out 36.9% of its earnings in the form of a dividend. NACCO Industries pays out 21.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Newell Brands has increased its dividend for 3 consecutive years. Newell Brands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent ratings and target prices for Newell Brands and NACCO Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Newell Brands currently has a consensus price target of $57.67, indicating a potential upside of 30.94%. Given Newell Brands’ higher possible upside, equities analysts plainly believe Newell Brands is more favorable than NACCO Industries.
Earnings and Valuation
This table compares Newell Brands and NACCO Industries’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Newell Brands||$15.41 billion||1.40||$2.63 billion||$2.49||17.69|
|NACCO Industries||$854.67 million||0.44||$27.70 million||$5.18||13.80|
Newell Brands has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than Newell Brands, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Newell Brands has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.
This table compares Newell Brands and NACCO Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Newell Brands beats NACCO Industries on 12 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 NACCO Industries
NACCO Industries, Inc. is a holding company. The Company’s principal businesses include mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. The Company’s subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection, LLC (KC). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. The Company’s HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including, blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. In addition, HBB designs, markets and distributes commercial products for restaurants, bars and hotels.
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