Financial Review: Church & Dwight (NYSE:CHD) vs. Spectrum Brands (NYSE:SPB)

Church & Dwight (NYSE:CHD) and Spectrum Brands (NYSE:SPB) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility & Risk

Church & Dwight has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares Church & Dwight and Spectrum Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Church & Dwight	12.41%	20.28%	9.49%
Spectrum Brands	2.76%	10.06%	5.49%

Valuation & Earnings

This table compares Church & Dwight and Spectrum Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Church & Dwight	$6.20 billion	4.25	$736.80 million	$3.25	34.37
Spectrum Brands	$2.81 billion	0.72	$99.70 million	$3.28	26.81

Church & Dwight has higher revenue and earnings than Spectrum Brands. Spectrum Brands is trading at a lower price-to-earnings ratio than Church & Dwight, indicating that it is currently the more affordable of the two stocks.

Dividends

Church & Dwight pays an annual dividend of $1.23 per share and has a dividend yield of 1.1%. Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 2.1%. Church & Dwight pays out 37.8% of its earnings in the form of a dividend. Spectrum Brands pays out 57.3% 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. Church & Dwight has raised its dividend for 29 consecutive years and Spectrum Brands has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Church & Dwight and Spectrum Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Church & Dwight	1	8	8	0	2.41
Spectrum Brands	0	4	4	0	2.50

Church & Dwight currently has a consensus price target of $108.44, indicating a potential downside of 2.91%. Spectrum Brands has a consensus price target of $97.86, indicating a potential upside of 11.30%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Spectrum Brands is more favorable than Church & Dwight.

Institutional and Insider Ownership

86.6% of Church & Dwight shares are owned by institutional investors. 1.2% of Church & Dwight shares are owned by company insiders. Comparatively, 4.5% of Spectrum Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Church & Dwight beats Spectrum Brands on 11 of the 17 factors compared between the two stocks.

About Church & Dwight

Church & Dwight is a consumer products company whose history traces to 1846, when John Dwight and Austin Church began producing baking soda. The company is best known for its ARM & HAMMER brand and sells household, personal care, and specialty products under a portfolio of owned brands. Its products include laundry detergents and cleaners, oral care items, cat litter, deodorants, condoms, pregnancy and ovulation tests, hair-removal products, and water flossers. Brands include OxiClean, Trojan, First Response, Nair, Waterpik, and TheraBreath, alongside ARM & HAMMER.

About Spectrum Brands

Spectrum Brands Holdings, Inc. is a global consumer products company that develops, manufactures and markets products for homes, pets and gardens. Its businesses serve consumers through a portfolio of established brands and retail, e-commerce and other distribution channels. The company’s Home and Personal Care products include small kitchen appliances, personal care devices and home appliances sold under brands such as Remington, Russell Hobbs, George Foreman and Black+Decker, under license. Its Global Pet Care business offers products for aquatic pets, companion animals and pet health, including brands such as Tetra, DreamBone and Nature’s Miracle.