Reynolds Consumer Products (NASDAQ:REYN – Get Free Report) and Oil-Dri Corporation Of America (NYSE:ODC – Get Free Report) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Dividends
Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. Oil-Dri Corporation Of America pays an annual dividend of $0.90 per share and has a dividend yield of 1.2%. Reynolds Consumer Products pays out 60.1% of its earnings in the form of a dividend. Oil-Dri Corporation Of America pays out 22.5% 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. Oil-Dri Corporation Of America has increased its dividend for 11 consecutive years.
Earnings & Valuation
This table compares Reynolds Consumer Products and Oil-Dri Corporation Of America”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reynolds Consumer Products | $3.72 billion | 1.39 | $301.00 million | $1.53 | 16.01 |
| Oil-Dri Corporation Of America | $493.84 million | 2.15 | $56.97 million | $4.00 | 18.31 |
Reynolds Consumer Products has higher revenue and earnings than Oil-Dri Corporation Of America. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Oil-Dri Corporation Of America, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Reynolds Consumer Products and Oil-Dri Corporation Of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reynolds Consumer Products | 8.53% | 15.55% | 7.10% |
| Oil-Dri Corporation Of America | 11.54% | 20.31% | 14.19% |
Volatility & Risk
Reynolds Consumer Products has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Oil-Dri Corporation Of America has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Insider and Institutional Ownership
26.8% of Reynolds Consumer Products shares are held by institutional investors. Comparatively, 49.0% of Oil-Dri Corporation Of America shares are held by institutional investors. 0.4% of Reynolds Consumer Products shares are held by company insiders. Comparatively, 11.6% of Oil-Dri Corporation Of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings for Reynolds Consumer Products and Oil-Dri Corporation Of America, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reynolds Consumer Products | 0 | 7 | 1 | 0 | 2.12 |
| Oil-Dri Corporation Of America | 0 | 0 | 1 | 0 | 3.00 |
Reynolds Consumer Products presently has a consensus price target of $25.20, indicating a potential upside of 2.86%. Given Reynolds Consumer Products’ higher possible upside, equities analysts clearly believe Reynolds Consumer Products is more favorable than Oil-Dri Corporation Of America.
Summary
Oil-Dri Corporation Of America beats Reynolds Consumer Products on 12 of the 16 factors compared between the two stocks.
About Reynolds Consumer Products
Reynolds Consumer Products manufactures and markets household products used for food preparation and storage, waste management, and foodservice. Its portfolio includes aluminum foil, parchment paper, baking products, food-storage bags and containers, trash bags, and disposable tableware. The company sells products under brands including Reynolds, Hefty, and Presto, as well as through private-label offerings. Its products are primarily sold in the United States and Canada through retailers and other distribution channels.
About Oil-Dri Corporation Of America
Oil-Dri Corporation of America develops, manufactures and markets products made from clay and other mineral resources. Its products are used in consumer, industrial, agricultural and animal-health applications, including absorbents for spills and maintenance, cat litter, and materials for purifying and processing fluids. The company sells consumer products through retail channels and supplies customized mineral-based products to commercial and industrial customers. Its offerings also include products used in animal health and agriculture, such as solutions for livestock and crop applications.
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