Krispy Kreme (NASDAQ:DNUT – Get Free Report) and Newell Brands (NASDAQ:NWL – Get Free Report) are both small-cap consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.
Profitability
This table compares Krispy Kreme and Newell Brands’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Krispy Kreme | -33.27% | -5.13% | -1.67% |
| Newell Brands | -3.96% | 9.17% | 2.14% |
Valuation and Earnings
This table compares Krispy Kreme and Newell Brands”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Krispy Kreme | $1.67 billion | 0.30 | $3.10 million | ($2.99) | -0.99 |
| Newell Brands | $7.20 billion | 0.27 | -$285.00 million | ($0.68) | -6.91 |
Krispy Kreme has higher earnings, but lower revenue than Newell Brands. Newell Brands is trading at a lower price-to-earnings ratio than Krispy Kreme, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
81.7% of Krispy Kreme shares are held by institutional investors. Comparatively, 92.5% of Newell Brands shares are held by institutional investors. 3.0% of Krispy Kreme shares are held by insiders. Comparatively, 0.7% of Newell Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Krispy Kreme has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Krispy Kreme and Newell Brands, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Krispy Kreme | 3 | 5 | 3 | 0 | 2.00 |
| Newell Brands | 1 | 5 | 4 | 0 | 2.30 |
Krispy Kreme presently has a consensus target price of $5.59, indicating a potential upside of 89.35%. Newell Brands has a consensus target price of $6.11, indicating a potential upside of 30.02%. Given Krispy Kreme’s higher probable upside, equities research analysts clearly believe Krispy Kreme is more favorable than Newell Brands.
Summary
Newell Brands beats Krispy Kreme on 8 of the 14 factors compared between the two stocks.
About Krispy Kreme
Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.
About Newell Brands
Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.
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