Contrasting Newell Brands (NWL) & Its Rivals

Newell Brands (NYSE: NWL) is one of 16 public companies in the “Plastics products, not elsewhere classified” industry, but how does it contrast to its peers? We will compare Newell Brands to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.

Dividends

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Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 3.6%. Newell Brands pays out 33.5% of its earnings in the form of a dividend. As a group, “Plastics products, not elsewhere classified” companies pay a dividend yield of 2.5% and pay out 43.1% of their earnings in the form of a dividend. Newell Brands is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Newell Brands and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newell Brands 18.65% 10.47% 3.99%
Newell Brands Competitors 4.42% 31.59% 6.91%

Institutional & Insider Ownership

92.7% of Newell Brands shares are held by institutional investors. Comparatively, 66.7% of shares of all “Plastics products, not elsewhere classified” companies are held by institutional investors. 1.0% of Newell Brands shares are held by insiders. Comparatively, 11.8% of shares of all “Plastics products, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Newell Brands and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newell Brands 0 13 4 0 2.24
Newell Brands Competitors 50 333 460 23 2.53

Newell Brands presently has a consensus price target of $33.33, suggesting a potential upside of 29.40%. As a group, “Plastics products, not elsewhere classified” companies have a potential upside of 6.07%. Given Newell Brands’ higher probable upside, analysts clearly believe Newell Brands is more favorable than its peers.

Volatility and Risk

Newell Brands has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Newell Brands’ peers have a beta of 0.62, meaning that their average stock price is 38% less volatile than the S&P 500.

Earnings & Valuation

This table compares Newell Brands and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Newell Brands $14.74 billion $2.75 billion 9.37
Newell Brands Competitors $2.56 billion $270.13 million 28.76

Newell Brands has higher revenue and earnings than its peers. Newell Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Newell Brands beats its peers on 8 of the 15 factors compared.

About Newell Brands

Newell Brands Inc. is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle. Writing segment consists of the Writing and Creative Expression business. Home Solutions segment designs, manufactures or sources and distributes a range of consumer products under various brand names. Commercial Products segment designs, manufactures or sources and distributes cleaning and refuse products. Its Baby & Parenting segment designs and distributes infant and juvenile products.

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