Spectrum Brands (NYSE:SPB) vs. Foxx Development (NASDAQ:FOXX) Critical Analysis

Spectrum Brands (NYSE:SPB) and Foxx Development (NASDAQ:FOXX) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Risk & Volatility

Spectrum Brands has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Foxx Development has a beta of -0.3, suggesting that its stock price is 130% less volatile than the S&P 500.

Institutional & Insider Ownership

60.4% of Foxx Development shares are owned by institutional investors. 3.9% of Spectrum Brands shares are owned by company insiders. Comparatively, 31.6% of Foxx Development shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Spectrum Brands and Foxx Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectrum Brands	0	3	3	0	2.50
Foxx Development	1	0	0	0	1.00

Spectrum Brands presently has a consensus price target of $86.00, indicating a potential downside of 1.38%. Given Spectrum Brands’ stronger consensus rating and higher possible upside, research analysts clearly believe Spectrum Brands is more favorable than Foxx Development.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectrum Brands	4.47%	8.23%	4.53%
Foxx Development	-79.80%	N/A	-59.35%

Valuation & Earnings

This table compares Spectrum Brands and Foxx Development”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectrum Brands	$2.81 billion	0.72	$99.70 million	$5.24	16.64
Foxx Development	$65.92 million	0.35	-$9.02 million	($6.87)	-0.48

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

Summary

Spectrum Brands beats Foxx Development on 12 of the 14 factors compared between the two stocks.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.

About Foxx Development

Foxx Development Holdings Inc. is a consumer electronics and integrated Internet-of-Things solution company catering to both retail and institutional clients. The company currently sells a diverse range of products including mobile phones, tablets and other consumer electronics devices principally in United State and is in the process of developing and distributing end-to-end communication terminals and IoT solutions. Foxx Development Holdings Inc., formerly known as Acri Capital Acquisition Corporation, is based in Austin, TX.