Newell Brands (NYSE: NWL) is one of 16 public companies in the “Plastics products, not elsewhere classified” industry, but how does it compare to its peers? We will compare Newell Brands to related companies based on the strength of its profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Risk and Volatility
Newell Brands has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Newell Brands’ peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.
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 Competitors||4.37%||31.51%||6.86%|
Institutional & Insider Ownership
92.7% of Newell Brands shares are owned by institutional investors. Comparatively, 66.7% of shares of all “Plastics products, not elsewhere classified” companies are owned by institutional investors. 1.0% of Newell Brands shares are owned by company insiders. Comparatively, 12.0% of shares of all “Plastics products, not elsewhere classified” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and 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||8.99|
|Newell Brands Competitors||$2.56 billion||$270.27 million||27.71|
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.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 3.7%. 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 2.6% 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.
This is a summary of current ratings and price targets for Newell Brands and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Newell Brands Competitors||48||325||454||23||2.53|
Newell Brands presently has a consensus price target of $33.33, suggesting a potential upside of 34.79%. As a group, “Plastics products, not elsewhere classified” companies have a potential upside of 14.25%. Given Newell Brands’ higher probable upside, equities analysts clearly believe Newell Brands is more favorable than its peers.
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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