Reviewing Clorox (NYSE:CLX) and Boyd Group Services (OTCMKTS:BYDGF)

Clorox (NYSE:CLX) and Boyd Group Services (OTCMKTS:BYDGF) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Dividends

Clorox pays an annual dividend of $4.96 per share and has a dividend yield of 4.6%. Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Clorox pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boyd Group Services pays out 118.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clorox has increased its dividend for 47 consecutive years. Clorox is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

78.5% of Clorox shares are held by institutional investors. Comparatively, 0.2% of Boyd Group Services shares are held by institutional investors. 0.6% of Clorox shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Clorox and Boyd Group Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clorox	5	11	1	0	1.76
Boyd Group Services	0	1	4	0	2.80

Clorox presently has a consensus target price of $127.60, indicating a potential upside of 18.84%. Given Clorox’s higher possible upside, research analysts clearly believe Clorox is more favorable than Boyd Group Services.

Volatility & Risk

Clorox has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Boyd Group Services has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares Clorox and Boyd Group Services”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clorox	$6.77 billion	1.93	$810.00 million	$6.37	16.86
Boyd Group Services	$3.07 billion	1.11	$24.54 million	$0.37	427.62

Clorox has higher revenue and earnings than Boyd Group Services. Clorox is trading at a lower price-to-earnings ratio than Boyd Group Services, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Clorox and Boyd Group Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clorox	11.40%	377.86%	17.35%
Boyd Group Services	0.27%	2.70%	0.91%

Summary

Clorox beats Boyd Group Services on 13 of the 17 factors compared between the two stocks.

About Clorox

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. It sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The Clorox Company was founded in 1913 and is headquartered in Oakland, California.

About Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.