Financial Analysis: Henkel AG & Co. (OTCMKTS:HENKY) & Ahold (OTCMKTS:ADRNY)

Henkel AG & Co. (OTCMKTS:HENKY) and Ahold (OTCMKTS:ADRNY) are both large-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Henkel AG & Co. and Ahold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Henkel AG & Co.	N/A	N/A	N/A
Ahold	2.45%	16.91%	4.90%

Insider and Institutional Ownership

0.0% of Henkel AG & Co. shares are held by institutional investors. Comparatively, 0.2% of Ahold shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Henkel AG & Co. and Ahold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Henkel AG & Co.	0	3	0	1	2.50
Ahold	0	2	0	2	3.00

Dividends

Henkel AG & Co. pays an annual dividend of $0.39 per share and has a dividend yield of 2.1%. Ahold pays an annual dividend of €0.93 per share and has a dividend yield of 1.9%. Ahold pays out 32.9% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Henkel AG & Co. and Ahold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henkel AG & Co.	$23.18 billion	1.38	$2.30 billion	N/A	N/A
Ahold	$104.46 billion	0.41	$2.56 billion	€2.83	17.21

Ahold has higher revenue and earnings than Henkel AG & Co..

Risk and Volatility

Henkel AG & Co. has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Ahold has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Summary

Ahold beats Henkel AG & Co. on 8 of the 12 factors compared between the two stocks.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.

About Ahold

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce in the United States, Europe, and internationally. The company's stores offer produce, dairy, meat, deli, bakery, seafood, and frozen products; grocery, beer, and wine; floral, pet food, health and beauty care, kitchen and cookware, gardening tools, general merchandise articles, electronics, newspapers and magazines, tobacco, etc.; gasoline; and pharmacy products. It operates its supermarkets, convenience stores, and online stores under the Food Lion, Stop & Shop, The GIANT Company, Hannaford, Giant Food, FreshDirect, Albert Heijn, bol.com, Etos, Gall & Gall, Delhaize, Albert, Alfa Beta Vassilopoulos, Mega Image, Delhaize Serbia, Peapod Digital labs, and Retail Business Service brands. The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016. Koninklijke Ahold Delhaize N.V. was founded in 1867 and is headquartered in Zaandam, the Netherlands.