Reviewing Newell Brands (NWL) and Its Rivals

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

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 2.6% and pay out 43.1% of their earnings in the form of a dividend. Newell Brands is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Newell Brands and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Newell Brands $14.74 billion $2.75 billion 9.29
Newell Brands Competitors $2.56 billion $270.27 million 28.99

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

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Newell Brands and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newell Brands 0 13 4 0 2.24
Newell Brands Competitors 49 330 456 23 2.53

Newell Brands currently has a consensus target price of $33.33, indicating a potential upside of 30.41%. As a group, “Plastics products, not elsewhere classified” companies have a potential upside of 11.60%. Given Newell Brands’ higher possible upside, analysts clearly believe Newell Brands is more favorable than its competitors.

Risk and Volatility

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

Profitability

This table compares Newell Brands and its competitors’ 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 4.37% 31.51% 6.86%

Summary

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

Newell Brands Company Profile

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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