Reviewing Ocean Bio-Chem (OBCI) and Clorox (CLX)

Ocean Bio-Chem (NASDAQ:OBCI) and Clorox (NYSE:CLX) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

Clorox pays an annual dividend of $3.84 per share and has a dividend yield of 2.4%. Ocean Bio-Chem does not pay a dividend. Clorox pays out 61.3% of its earnings in the form of a dividend. Clorox has increased its dividend for 40 consecutive years.

Profitability

This table compares Ocean Bio-Chem and Clorox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ocean Bio-Chem 6.90% 11.13% 8.29%
Clorox 13.59% 102.65% 15.16%

Volatility and Risk

Ocean Bio-Chem has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Clorox has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ocean Bio-Chem and Clorox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ocean Bio-Chem 0 0 0 0 N/A
Clorox 4 7 3 0 1.93

Clorox has a consensus target price of $139.38, indicating a potential downside of 11.64%. Given Clorox’s higher probable upside, analysts clearly believe Clorox is more favorable than Ocean Bio-Chem.

Insider & Institutional Ownership

3.5% of Ocean Bio-Chem shares are owned by institutional investors. Comparatively, 78.4% of Clorox shares are owned by institutional investors. 62.5% of Ocean Bio-Chem shares are owned by company insiders. Comparatively, 1.4% of Clorox shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Ocean Bio-Chem and Clorox’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ocean Bio-Chem $38.93 million 0.91 $2.60 million N/A N/A
Clorox $6.12 billion 3.29 $823.00 million $6.26 25.20

Clorox has higher revenue and earnings than Ocean Bio-Chem.

Summary

Clorox beats Ocean Bio-Chem on 12 of the 15 factors compared between the two stocks.

About Ocean Bio-Chem

Ocean Bio-Chem, Inc. manufactures, markets, and distributes appearance, performance, and maintenance products for the marine, automotive, power sports, recreational vehicle, and outdoor power equipment markets in the United States and Canada. The company offers marine products, including polishes, cleaners, protectants, and waxes; enzyme fuel treatments; private label products; motor and teak oils, boat washes, vinyl and teak cleaners, bilge and hull cleaners, silicone and polyurethane sealants, polysulfide sealants, gasket materials, lubricants, antifouling additives, and anti-freeze coolants; and brushes, poles, tie-downs, and other related accessories. It also manufactures automotive products, such as fuel treatments for gas and diesel engines, motor oils, greases, and related items; anti-freeze and windshield washes; and automotive polishes, cleaners, and other items. In addition, the company offers fuel treatment and other specialty products to the recreational vehicle market; solutions to various problems associated with E-10 fuel; and other specialty recreational vehicle/power sports products, including cleaners, polishes, detergents, fabric cleaners and protectors, silicone sealants, waterproofers, gasket materials, degreasers, vinyl cleaners and protectors, toilet treatment fluids, and anti-freeze/coolants. Further, it provides solutions to rectify operating engine problems in commercial lawn, and other home and garden power equipment; and blends and packages chemical formulations, as well as manufactures PVC and HDPE blow molded bottles. Additionally, the company offers disinfectants and air care products for deodorizing, as well as products to eliminate mold and mildew; and PVC and HDPE blow molded bottles. Ocean Bio-Chem, Inc. sells its products under the Star Tron, Performacide, and Star brite brands through retailers and online retailers, as well as to distributors. The company was founded in 1973 and is headquartered in Fort Lauderdale, Florida.

About Clorox

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Cleaning, Household, Lifestyle, and International. The company offers laundry additives, including bleach products under the Clorox brand, as well as Clorox 2 stain fighter and color booster; home care products primarily under the Clorox, Formula 409, Liquid-Plumr, Pine-Sol, S.O.S, and Tilex brands; naturally derived products under the Green Works brand; and professional cleaning, disinfecting, and food service products under the Clorox, Dispatch, HealthLink, Clorox Healthcare, Hidden Valley, KC Masterpiece, and Soy Vay brands. It also provides charcoal products under the Kingsford and Match Light brands; bags, wraps, and containers under the Glad brand; cat litter products under the Fresh Step, Scoop Away, and Ever Clean brands; and digestive health products under the RenewLife brand. In addition, the company offers dressings and sauces primarily under the Hidden Valley, KC Masterpiece, Kingsford, and Soy Vay brands; water-filtration systems and filters under the Brita brand; natural personal care products under the Burt's Bees brand; and dietary supplements under the Rainbow Light, Natural Vitality, and Neocell brands. Further, it markets its products under the PinoLuz, Ayudin, Limpido, Clorinda, Poett, Mistolin, Lestoil, Bon Bril, Agua Jane, and Chux brands. The company sells its products primarily through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, third-party and owned e-commerce channels, military stores, and distributors, as well as a direct sales force and medical supply distributors. The Clorox Company was founded in 1913 and is headquartered in Oakland, California.

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

Leave a Reply