Spectrum Brands (NYSE: SPB) and Atkore International Group (NYSE:ATKR) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Spectrum Brands pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Atkore International Group does not pay a dividend. Spectrum Brands pays out 33.3% of its earnings in the form of a dividend. Spectrum Brands has increased its dividend for 3 consecutive years.
Volatility and Risk
Spectrum Brands has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Atkore International Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.
Institutional & Insider Ownership
48.3% of Spectrum Brands shares are owned by institutional investors. Comparatively, 97.0% of Atkore International Group shares are owned by institutional investors. 1.0% of Spectrum Brands shares are owned by company insiders. Comparatively, 68.8% of Atkore International Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Spectrum Brands and Atkore International Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Atkore International Group||0||0||3||0||3.00|
Spectrum Brands presently has a consensus target price of $137.25, suggesting a potential upside of 18.63%. Atkore International Group has a consensus target price of $23.67, suggesting a potential upside of 10.44%. Given Spectrum Brands’ higher possible upside, analysts plainly believe Spectrum Brands is more favorable than Atkore International Group.
This table compares Spectrum Brands and Atkore International Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Atkore International Group||5.63%||26.22%||7.73%|
Valuation & Earnings
This table compares Spectrum Brands and Atkore International Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spectrum Brands||$5.01 billion||1.33||$295.80 million||$5.04||22.96|
|Atkore International Group||$1.50 billion||0.90||$84.63 million||$1.26||17.01|
Spectrum Brands has higher revenue and earnings than Atkore International Group. Atkore International Group is trading at a lower price-to-earnings ratio than Spectrum Brands, indicating that it is currently the more affordable of the two stocks.
Spectrum Brands beats Atkore International Group on 10 of the 17 factors compared between the two stocks.
Spectrum Brands Company Profile
Spectrum Brands Holdings, Inc. (SB Holdings) is a diversified global consumer products company. The Company manufactures, markets and/or distributes its products in approximately 160 countries in the North America (NA); Europe, the Middle East and Africa (EMEA); Latin America (LATAM), and Asia-Pacific (APAC) regions. It has five segments: Global Batteries & Appliances (GBA), Global Pet Supplies (PET), Home and Garden (H&G), Hardware & Home Improvement (HHI) and Global Auto Care (GAC). The Company’s GBA segment includes product categories, such as consumer batteries, small appliances and personal care. The Company’s HHI segment includes product categories, such as lockset, plumbing and hardware. The Company’s PET segment’s product categories include aquatics, companion animal and pet food. The Company’s H&G segment’s product categories include controls, household and repellents. The Company’s GAC segment’s product categories include appearance, performance and A/C recharge.
Atkore International Group Company Profile
Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.
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