Head-To-Head Survey: WD-40 (WDFC) vs. Its Rivals

WD-40 (NASDAQ: WDFC) is one of 19 publicly-traded companies in the “CON PRD-MISC STAPLES” industry, but how does it contrast to its competitors? We will compare WD-40 to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Profitability

This table compares WD-40 and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WD-40 13.84% 39.23% 14.76%
WD-40 Competitors 7.50% 77.93% 7.58%

Volatility & Risk

WD-40 has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, WD-40’s competitors have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares WD-40 and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WD-40 $380.51 million $52.93 million 35.40
WD-40 Competitors $7.93 billion $546.24 million 23.55

WD-40’s competitors have higher revenue and earnings than WD-40. WD-40 is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for WD-40 and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WD-40 0 3 0 0 2.00
WD-40 Competitors 98 582 704 34 2.48

WD-40 currently has a consensus price target of $119.00, indicating a potential downside of 9.64%. As a group, “CON PRD-MISC STAPLES” companies have a potential upside of 23.94%. Given WD-40’s competitors stronger consensus rating and higher possible upside, analysts clearly believe WD-40 has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

85.9% of WD-40 shares are held by institutional investors. Comparatively, 82.5% of shares of all “CON PRD-MISC STAPLES” companies are held by institutional investors. 3.9% of WD-40 shares are held by insiders. Comparatively, 5.2% of shares of all “CON PRD-MISC STAPLES” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

WD-40 pays an annual dividend of $2.16 per share and has a dividend yield of 1.6%. WD-40 pays out 58.1% of its earnings in the form of a dividend. As a group, “CON PRD-MISC STAPLES” companies pay a dividend yield of 2.2% and pay out 43.0% of their earnings in the form of a dividend. WD-40 lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

WD-40 competitors beat WD-40 on 11 of the 15 factors compared.

About WD-40

WD-40 Company is a global company engaged in developing and selling products, which solve problems in workshops, factories and homes. The Company’s segments include the Americas; Europe, Middle East and Africa (EMEA), and Asia-Pacific. The Company’s Americas segment includes the United States, Canada and Latin America. The EMEA segment includes countries in Europe, the Middle East, Africa and India. The Asia-Pacific segment includes Australia, China and other countries in the Asia region. The Company has two product groups, which include maintenance products and homecare and cleaning products. As of August 31, 2016, the Company marketed and sold its products in more than 176 countries and territories around the world primarily through mass retail and home center stores, warehouse club stores, grocery stores, hardware stores, automotive parts outlets, sport retailers, independent bike dealers, online retailers and industrial distributors and suppliers.

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