Spectrum Brands (NYSE: SPB) and GrafTech International (NYSE:GTI) are both consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Spectrum Brands and GrafTech International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spectrum Brands 0 1 9 0 2.90
GrafTech International 0 0 0 0 N/A

Spectrum Brands presently has a consensus target price of $137.25, indicating a potential upside of 19.90%. Given Spectrum Brands’ higher possible upside, research analysts clearly believe Spectrum Brands is more favorable than GrafTech International.

Earnings and Valuation

This table compares Spectrum Brands and GrafTech International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spectrum Brands $5.01 billion 1.32 $295.80 million $5.04 22.71
GrafTech International N/A N/A N/A ($2.76) -1.83

Spectrum Brands has higher revenue and earnings than GrafTech International. GrafTech International is trading at a lower price-to-earnings ratio than Spectrum Brands, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Spectrum Brands and GrafTech International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spectrum Brands 5.91% 17.48% 4.40%
GrafTech International -13.82% -9.99% -5.32%

Dividends

Spectrum Brands pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. GrafTech International does not pay a dividend. Spectrum Brands pays out 33.3% of its earnings in the form of a dividend. Spectrum Brands has raised its dividend for 3 consecutive years.

Institutional & Insider Ownership

48.3% of Spectrum Brands shares are owned by institutional investors. 1.0% of Spectrum Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Spectrum Brands beats GrafTech International on 11 of the 12 factors compared between the two stocks.

About Spectrum Brands

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.

About GrafTech International

GrafTech International Ltd. (GTI) is a manufacturer of graphite electrodes, products essential to the production of electric arc furnace (EAF) steel and other ferrous and nonferrous metals. The Company produces needle coke products, which are the primary raw material needed in the manufacture of graphite electrodes. The Company manufactures carbon, graphite and semi-graphite refractory products, which protect the walls of blast furnaces and submerged arc furnaces. The Company’s operating segments include: Industrial Materials, which include graphite electrodes, refractory products and needle coke products, and Engineered Solutions, which includes advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced materials. The Company has seven product categories: graphite electrodes, refractory products, needle coke products, advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced materials.

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