Analyzing Kellanova (NYSE:K) & School Specialty (OTCMKTS:SCOO)

School Specialty (OTCMKTS:SCOO) and Kellanova (NYSE:K) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Insider & Institutional Ownership

83.9% of Kellanova shares are held by institutional investors. 41.0% of School Specialty shares are held by company insiders. Comparatively, 1.8% of Kellanova shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares School Specialty and Kellanova”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
School Specialty	N/A	N/A	N/A	N/A	N/A
Kellanova	$12.75 billion	2.27	$1.34 billion	$3.64	22.83

Kellanova has higher revenue and earnings than School Specialty.

Profitability

This table compares School Specialty and Kellanova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
School Specialty	N/A	N/A	N/A
Kellanova	10.08%	31.73%	8.32%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for School Specialty and Kellanova, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
School Specialty	0	0	0	0	0.00
Kellanova	0	4	0	0	2.00

Kellanova has a consensus price target of $83.50, indicating a potential upside of 0.46%. Given Kellanova’s stronger consensus rating and higher possible upside, analysts clearly believe Kellanova is more favorable than School Specialty.

Summary

Kellanova beats School Specialty on 7 of the 8 factors compared between the two stocks.

About School Specialty

School Specialty, Inc., together with its subsidiaries, provides supplies, furniture, technology products, and curriculum solutions to the education marketplace in the United States and Canada. The company’s Distribution segment offers office products, classroom supplies, janitorial and sanitation supplies, school equipment, school and student safety and security products and services, physical education products, art supplies and paper, and others; physical education programs, solutions, resources, and equipment to improve student and staff wellness; and science education products, supplemental curriculum, and lab equipment and supplies. It also provides supplemental learning materials, teaching resources, classroom libraries, and manipulatives; intervention products; educator-inspired quality audio technology products, including multi-media, audio visual, and presentation equipment for the PreK-12 education market; and school-specific furniture and equipment for in-school, in-classroom, and outdoor use, as well as project management and design services for school refurbishment and new construction projects. This segment offers its products under the Childcraft, Sax Arts & Crafts, Califone, Classroom Select, Sportime, Abilitations, Hammond & Stephens, Brodhead Garrett, School Smart, Royal Seating, Projects by Design, CPO Science, Frey Scientific, Educator’s Publishing Service, Wordly Wise 3000, Explode the Code, ThinkMath!, SSI Guardian, Making Connections, S.P.I.R.E, Buckle Down, and Coach brands. Its Curriculum segment develops and sells standards-based curriculum science products, such as laboratory supplies and equipment, and furniture under the FOSS, Frey Scientific, Delta Science Module, Delta Education, CPO Science, and Neo/SCI brand names. The company offers its products through its sales force, catalogs, and its proprietary e-commerce Websites. School Specialty, Inc. was founded in 1959 and is headquartered in Greenville, Wisconsin.

About Kellanova

Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg’s, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr’s, Kellogg’s Extra, Müsli, Fruit n Fibre, Kellogg’s Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy’s, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, and Choco Krispies brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.