Critical Comparison: Turning Point Brands (TPB) versus Standard Diversified Inc Class A (NYSEAMERICAN) (SDI)

Turning Point Brands (NYSE:TPB) and Standard Diversified Inc Class A (NYSEAMERICAN) (NYSE:SDI) are both small-cap consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

27.2% of Turning Point Brands shares are owned by institutional investors. Comparatively, 44.5% of Standard Diversified Inc Class A (NYSEAMERICAN) shares are owned by institutional investors. 6.9% of Turning Point Brands shares are owned by insiders. Comparatively, 10.2% of Standard Diversified Inc Class A (NYSEAMERICAN) shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Turning Point Brands and Standard Diversified Inc Class A (NYSEAMERICAN)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Turning Point Brands $285.78 million 2.78 $20.20 million $1.08 38.12
Standard Diversified Inc Class A (NYSEAMERICAN) $285.80 million 0.99 $10.37 million N/A N/A

Turning Point Brands has higher earnings, but lower revenue than Standard Diversified Inc Class A (NYSEAMERICAN).

Dividends

Turning Point Brands pays an annual dividend of $0.16 per share and has a dividend yield of 0.4%. Standard Diversified Inc Class A (NYSEAMERICAN) does not pay a dividend. Turning Point Brands pays out 14.8% of its earnings in the form of a dividend.

Risk and Volatility

Turning Point Brands has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, Standard Diversified Inc Class A (NYSEAMERICAN) has a beta of -0.45, suggesting that its share price is 145% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Turning Point Brands and Standard Diversified Inc Class A (NYSEAMERICAN), as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Turning Point Brands 0 0 2 0 3.00
Standard Diversified Inc Class A (NYSEAMERICAN) 0 0 0 0 N/A

Turning Point Brands currently has a consensus target price of $45.00, suggesting a potential upside of 9.30%. Given Turning Point Brands’ higher probable upside, research analysts clearly believe Turning Point Brands is more favorable than Standard Diversified Inc Class A (NYSEAMERICAN).

Profitability

This table compares Turning Point Brands and Standard Diversified Inc Class A (NYSEAMERICAN)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Turning Point Brands 7.70% 51.44% 9.92%
Standard Diversified Inc Class A (NYSEAMERICAN) 2.40% 18.09% 3.83%

Summary

Turning Point Brands beats Standard Diversified Inc Class A (NYSEAMERICAN) on 9 of the 13 factors compared between the two stocks.

Turning Point Brands Company Profile

Turning Point Brands, Inc., together with its subsidiaries, provides other tobacco products primarily in the United States. It operates through three segments: Smokeless Products, Smoking Products, and NewGen Products. The Smokeless Products segment manufactures and markets moist snuff; and contracts for and markets loose leaf chewing tobacco products. The Smoking Products segment imports and markets cigarette papers, tubes, and related products, as well as finished cigars, make-your-own cigar tobaccos, and cigar wraps; and processes, packages, and markets pipe tobaccos. The NewGen Products segment markets and distributes liquid vapor products, tobacco vaporizer products, and other products without tobacco and nicotine, including e-cigarettes, e-liquids, vaporizers, and other related products; and distributes various assortments of vaping products to non-traditional retail outlets through VaporBeast and Vapor Shark, as well as distributes various vaping related products to individual consumers through Vapor Shark branded retail outlets. The company sells its products under the Zig-Zag, Beech-Nut, Stoker's, Trophy, Havana Blossom, Durango, Our Pride, Big Mountain, Appalachia, Springfield Standard, Snake River, Tequila Sunrise, Fred's Choice, Old Hillside, Red Cap, Tennessee Chew, VaporBeast, and Vapor Shark brands. It sells its products to wholesale distributors and retail merchants in the independent and chain convenience store, tobacco outlet, food store, mass merchandising, and drug store and non-traditional retail channels. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. Turning Point Brands, Inc. was incorporated in 2004 and is headquartered in Louisville, Kentucky.

Standard Diversified Inc Class A (NYSEAMERICAN) Company Profile

Standard Diversified, Inc. operates as shell company, which intends to identify new business and investment opportunities. The company was founded by Martha C. Reider and Richard C. Birkmeyer in 1990 and is headquartered in Mineola, NY.

Receive News & Ratings for Turning Point Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Turning Point Brands and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply