WD-40 (NASDAQ: WDFC) and Clorox Company (The) (NYSE:CLX) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitabiliy and earnings.
Risk and Volatility
WD-40 has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Clorox Company (The) has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.
Earnings & Valuation
This table compares WD-40 and Clorox Company (The)’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WD-40||$381.10 million||3.85||$80.20 million||$3.70||28.32|
|Clorox Company (The)||$5.93 billion||2.92||$1.22 billion||$5.33||25.18|
Clorox Company (The) has higher revenue and earnings than WD-40. Clorox Company (The) is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.
This table compares WD-40 and Clorox Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clorox Company (The)||11.74%||190.67%||15.74%|
This is a breakdown of recent recommendations and price targets for WD-40 and Clorox Company (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clorox Company (The)||0||9||2||0||2.18|
WD-40 presently has a consensus price target of $108.67, suggesting a potential upside of 3.69%. Clorox Company (The) has a consensus price target of $126.80, suggesting a potential downside of 5.52%. Given WD-40’s higher possible upside, research analysts plainly believe WD-40 is more favorable than Clorox Company (The).
WD-40 pays an annual dividend of $1.96 per share and has a dividend yield of 1.9%. Clorox Company (The) pays an annual dividend of $3.36 per share and has a dividend yield of 2.5%. WD-40 pays out 53.0% of its earnings in the form of a dividend. Clorox Company (The) pays out 63.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Clorox Company (The) has raised its dividend for 39 consecutive years. Clorox Company (The) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
82.1% of WD-40 shares are owned by institutional investors. Comparatively, 70.3% of Clorox Company (The) shares are owned by institutional investors. 3.9% of WD-40 shares are owned by company insiders. Comparatively, 0.7% of Clorox Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Clorox Company (The) beats WD-40 on 9 of the 17 factors compared between the two stocks.
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.
About Clorox Company (The)
The Clorox Company is a manufacturer and marketer of consumer and professional products. The Company sells its products primarily through mass retail outlets, e-commerce channels, wholesale distributors and medical supply distributors. The Company operates through four segments: Cleaning, Household, Lifestyle and International. Its Cleaning segment consists of laundry, home care and professional products marketed and sold in the United States. Its Household segment consists of charcoal, cat litter and plastic bags, wraps and container products marketed and sold in the United States. Its Lifestyle segment consists of food products, water-filtration systems and filters, and natural personal care products marketed and sold in the United States. Its International segment consists of products sold outside the United States. It markets some of the consumer brand names, such as namesake bleach and cleaning products, Pine-Sol cleaners, Liquid-Plumr clog removers and Kingsford charcoal.
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