Newell Brands (NYSE:NWL) versus PIGEON CORP/ADR (PGENY) Head-To-Head Review

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PIGEON CORP/ADR (OTCMKTS:PGENY) and Newell Brands (NYSE:NWL) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares PIGEON CORP/ADR and Newell Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PIGEON CORP/ADR N/A N/A N/A
Newell Brands -46.92% 9.55% 3.81%

Insider and Institutional Ownership

98.4% of Newell Brands shares are owned by institutional investors. 1.0% of Newell Brands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

PIGEON CORP/ADR has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for PIGEON CORP/ADR and Newell Brands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PIGEON CORP/ADR 0 0 0 0 N/A
Newell Brands 0 11 3 0 2.21

Newell Brands has a consensus target price of $25.85, indicating a potential upside of 9.80%. Given Newell Brands’ higher probable upside, analysts plainly believe Newell Brands is more favorable than PIGEON CORP/ADR.

Valuation & Earnings

This table compares PIGEON CORP/ADR and Newell Brands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PIGEON CORP/ADR $917.43 million 5.54 $126.52 million $0.26 40.15
Newell Brands $14.74 billion 0.75 $2.75 billion $2.75 8.56

Newell Brands has higher revenue and earnings than PIGEON CORP/ADR. Newell Brands is trading at a lower price-to-earnings ratio than PIGEON CORP/ADR, indicating that it is currently the more affordable of the two stocks.

Dividends

PIGEON CORP/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 3.9%. PIGEON CORP/ADR pays out 46.2% of its earnings in the form of a dividend. Newell Brands pays out 33.5% 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. Newell Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Newell Brands beats PIGEON CORP/ADR on 11 of the 15 factors compared between the two stocks.

PIGEON CORP/ADR Company Profile

Pigeon Corporation manufactures, sells, imports, and exports baby and child-care products, maternity items, women's care products, home healthcare products, elder care products, etc. in Japan and internationally. The company operates through Domestic Baby & Mother Care Business, Child Care Service Business, Health & Elder Care Business, Overseas Business, China Business, and Other segments. It offers breastfeeding, weaning, skincare, women's care, and large-sized products for babies, as well as other products for babies and mothers. The company also provides child-rearing support, babysitter dispatch, event child-care, and preschool education services; and operates child-minding facilities and daycare centers. In addition, it offers elder care and anti-aging products, and elder care support services; and baby and mother related products, such as nursing bottles and nipples, toiletries, and skincare products. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

Newell Brands Company Profile

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company's Live segment offers household products, including kitchen appliances, gourmet cookware, bakeware and cutlery, food storage and home storage products, fresh preserving products, and home fragrance products; and baby gear, infant care, and health products primarily under Aprica, Baby Jogger, Ball, Calphalon, Chesapeake Bay Candle, Crock-Pot, FoodSaver, Graco, Mr. Coffee, NUK, Oster, Rubbermaid, Sistema, Sunbeam, Tigex, WoodWick, and Yankee Candle brands. Its Learn segment offers writing instruments, including markers and highlighters, pens and pencils; art products; activity-based adhesive and cutting products; and fine writing instruments, labeling solutions, and custom commemorative jewelry and academic regalia primarily under Dymo, Elmer's, Expo, Jostens, Mr. Sketch, Paper Mate, Parker, Prismacolor, Sharpie, Waterman, and X-Acto brands. The company's Work segment offers cleaning and refuse products; hygiene systems; material handling solutions; consumer and commercial totes; and commercial food service and premium tableware products primarily under Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, Spontex, and Waddington brands. Its Play segment offers products for outdoor and outdoor-related activities primarily under Berkley, Coleman, Contigo, Ex Officio, Marmot, Rawlings, and Shakespeare brands. The company's Other segment offers plastic products, including closures, contact lens packaging, medical disposables, plastic cutlery and rigid packaging, beauty products, vacuum cleaning systems, and gaming products primarily under Jarden Plastic Solutions, Jarden Applied Materials, Jarden Zinc Products, Goody, Bicycle, and Rainbow brands. Newell Brands Inc. was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. The company was founded in 1903 and is headquartered in Hoboken, New Jersey.

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