Financial Comparison: Brady (BRC) vs. Kid Brands (KIDBQ)

Brady (NYSE:BRC) and Kid Brands (OTCMKTS:KIDBQ) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Profitability

This table compares Brady and Kid Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brady 8.15% 15.01% 10.70%
Kid Brands N/A N/A N/A

Volatility and Risk

Brady has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Kid Brands has a beta of -1.54, suggesting that its stock price is 254% less volatile than the S&P 500.

Insider and Institutional Ownership

76.8% of Brady shares are held by institutional investors. Comparatively, 0.7% of Kid Brands shares are held by institutional investors. 15.6% of Brady shares are held by insiders. Comparatively, 24.5% of Kid Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Brady and Kid Brands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brady 1 2 0 0 1.67
Kid Brands 0 0 0 0 N/A

Brady currently has a consensus target price of $42.50, suggesting a potential upside of 2.81%. Given Brady’s higher possible upside, equities analysts plainly believe Brady is more favorable than Kid Brands.

Dividends

Brady pays an annual dividend of $0.85 per share and has a dividend yield of 2.1%. Kid Brands does not pay a dividend. Brady pays out 41.7% of its earnings in the form of a dividend. Brady has increased its dividend for 32 consecutive years.

Earnings and Valuation

This table compares Brady and Kid Brands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brady $1.17 billion 1.85 $91.06 million $2.04 20.26
Kid Brands N/A N/A N/A N/A N/A

Brady has higher revenue and earnings than Kid Brands.

Summary

Brady beats Kid Brands on 9 of the 11 factors compared between the two stocks.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The IDS segment offers safety signs, pipe markers, labeling systems, spill control products, and lockout/tagout devices for facility identification and protection; materials and printing systems for product identification, brand protection labeling, work in process labeling, and finished product identification; and hand-held printers, wire markers, sleeves, and tags for wire identification, as well as software and services for safety compliance auditing, procedure writing, and training. Its products also comprise name tags, badges, lanyards, and access control software for people identification; wristbands and labels for tracking and enhancing the safety of patients in hospitals; and custom wristbands for use in the leisure and entertainment industry, such as theme parks, concerts, and festivals. This segment serves customers in various industries, such as industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, leisure and entertainment, telecommunications, and others through distributors, direct sales, catalog marketing, and digital channels. The WPS segment provides workplace safety and compliance products, such as safety and compliance signs, tags, labels, informational signage, asset tracking labels, first aid products, industrial warehouse and office equipment, and labor law compliance posters for various industries, including process, government, education, construction, and utilities, as well as manufacturers through catalog and digital channels. It also offers stock and custom identification products, as well as sells related resale products. Brady Corporation was founded in 1914 and is headquartered in Milwaukee, Wisconsin.

About Kid Brands

Kid Brands, Inc., together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and décor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art, as well as nursery appliances, diaper bags, and spa/bath products art under the Kids Line, Carter's, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands. It also provides cribs, mattresses, and other nursery furniture under the BabiItalia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys and feeding products, bath and baby care items, and baby gear with features that address the various stages of an infant's early years under the Sassy, Carter's, Disney, Garanimals, and Kokopax brands. In addition, the company markets a range of products under various licenses, including Carter's, Disney, Graco, and Serta. Kid Brands, Inc. sells its products through its own direct sales force, as well as through independent representatives and distributors to retail customers in the United States and internationally, including mass merchandisers, baby superstores, specialty stores, department stores, and boutiques. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is headquartered in Rutherford, New Jersey. On June 18, 2014, Kid Brands, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.

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