Financial Comparison: Hermes International (OTCMKTS:HESAY) vs. WD-40 (NASDAQ:WDFC)

Hermes International (OTCMKTS:HESAY) and WD-40 (NASDAQ:WDFC) are both consumer staples 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hermes International and WD-40, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hermes International	0	4	0	2	2.67
WD-40	0	1	1	0	2.50

WD-40 has a consensus target price of $300.00, indicating a potential upside of 29.74%. Given WD-40’s higher possible upside, analysts clearly believe WD-40 is more favorable than Hermes International.

Insider & Institutional Ownership

91.5% of WD-40 shares are owned by institutional investors. 0.8% of WD-40 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.

Dividends

Hermes International pays an annual dividend of $1.30 per share and has a dividend yield of 0.5%. WD-40 pays an annual dividend of $4.08 per share and has a dividend yield of 1.8%. WD-40 pays out 62.1% of its earnings in the form of a dividend. WD-40 has raised its dividend for 17 consecutive years. WD-40 is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Hermes International and WD-40’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hermes International	N/A	N/A	N/A
WD-40	14.42%	30.10%	16.79%

Earnings and Valuation

This table compares Hermes International and WD-40″s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hermes International	$16.42 billion	15.44	$4.98 billion	N/A	N/A
WD-40	$619.98 million	5.03	$90.99 million	$6.57	35.19

Hermes International has higher revenue and earnings than WD-40.

Summary

WD-40 beats Hermes International on 9 of the 15 factors compared between the two stocks.

About Hermes International

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and a full range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers. It sells its products through a network of stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.