Analyzing Spectrum Brands Holdings (SPB) and The Competition
Spectrum Brands Holdings (NYSE: SPB) is one of 47 public companies in the “Electrical Components & Equipment” industry, but how does it contrast to its peers? We will compare Spectrum Brands Holdings to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.
This table compares Spectrum Brands Holdings and its peers’ 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%|
|Spectrum Brands Holdings Competitors||-3.49%||5.81%||2.20%|
Valuation and Earnings
This table compares Spectrum Brands Holdings and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Spectrum Brands Holdings||$4.94 billion||$865.80 million||22.46|
|Spectrum Brands Holdings Competitors||$1.86 billion||$293.26 million||-35.13|
Spectrum Brands Holdings has higher revenue and earnings than its peers. Spectrum Brands Holdings is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
47.0% of Spectrum Brands Holdings shares are owned by institutional investors. Comparatively, 66.9% of shares of all “Electrical Components & Equipment” companies are owned by institutional investors. 1.0% of Spectrum Brands Holdings shares are owned by insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Spectrum Brands Holdings has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Spectrum Brands Holdings’ peers have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Spectrum Brands Holdings and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spectrum Brands Holdings||0||1||8||0||2.89|
|Spectrum Brands Holdings Competitors||188||924||1214||7||2.45|
Spectrum Brands Holdings presently has a consensus target price of $142.29, indicating a potential upside of 29.32%. As a group, “Electrical Components & Equipment” companies have a potential upside of 1.48%. Given Spectrum Brands Holdings’ stronger consensus rating and higher possible upside, equities analysts plainly believe Spectrum Brands Holdings is more favorable than its peers.
Spectrum Brands Holdings pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Spectrum Brands Holdings pays out 34.3% of its earnings in the form of a dividend. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.5% and pay out 44.2% of their earnings in the form of a dividend. Spectrum Brands Holdings has increased its dividend for 3 consecutive years. Spectrum Brands Holdings is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Spectrum Brands Holdings beats its peers on 11 of the 15 factors compared.
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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