Hubbell (HUBB) vs. Spectrum Brands Holdings (SPB) Head-To-Head Analysis
Hubbell (NYSE: HUBB) and Spectrum Brands Holdings (NYSE:SPB) are both mid-cap industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider & Institutional Ownership
85.2% of Hubbell shares are owned by institutional investors. Comparatively, 47.1% of Spectrum Brands Holdings shares are owned by institutional investors. 1.3% of Hubbell shares are owned by company insiders. Comparatively, 1.0% of Spectrum Brands Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Hubbell 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%|
Earnings and Valuation
This table compares Hubbell and Spectrum Brands Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hubbell||$3.56 billion||1.74||$606.70 million||$5.28||21.46|
|Spectrum Brands Holdings||$4.94 billion||1.24||$865.80 million||$4.90||21.47|
Spectrum Brands Holdings has higher revenue and earnings than Hubbell. Hubbell is trading at a lower price-to-earnings ratio than Spectrum Brands Holdings, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Hubbell and Spectrum Brands Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spectrum Brands Holdings||0||1||7||0||2.88|
Hubbell currently has a consensus target price of $121.50, indicating a potential upside of 7.23%. Spectrum Brands Holdings has a consensus target price of $145.29, indicating a potential upside of 38.09%. Given Spectrum Brands Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Spectrum Brands Holdings is more favorable than Hubbell.
Risk and Volatility
Hubbell has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Spectrum Brands Holdings has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
Hubbell pays an annual dividend of $2.80 per share and has a dividend yield of 2.5%. Spectrum Brands Holdings pays an annual dividend of $1.68 per share and has a dividend yield of 1.6%. Hubbell pays out 53.0% of its earnings in the form of a dividend. Spectrum Brands Holdings pays out 34.3% 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. Hubbell has raised its dividend for 3 consecutive years. Hubbell is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Hubbell beats Spectrum Brands Holdings on 10 of the 17 factors compared between the two stocks.
Hubbell Incorporated is engaged in the design, manufacture and sale of electrical and electronic products for a range of non-residential and residential construction, industrial and utility applications. The Company’s segments include Electrical and the Power. The Electrical segment consists of businesses that sell stock and custom products, including standard and special application wiring device products, rough-in electrical products, lighting fixtures and controls, components and assemblies for the natural gas distribution market, as well as other electrical equipment. In addition, certain businesses design and manufacture a range of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry.
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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