Comparing Whirlpool (WHR) & Electrolux (ELUXY)

Electrolux (OTCMKTS: ELUXY) and Whirlpool (NYSE:WHR) are both large-cap consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

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This table compares Electrolux and Whirlpool’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Electrolux 4.73% 33.29% 6.71%
Whirlpool 1.65% 18.36% 5.08%

Earnings and Valuation

This table compares Electrolux and Whirlpool’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Electrolux $14.31 billion 12.10 $673.40 million $4.66 12.85
Whirlpool $21.25 billion 0.51 $350.00 million $13.74 11.18

Electrolux has higher earnings, but lower revenue than Whirlpool. Whirlpool is trading at a lower price-to-earnings ratio than Electrolux, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Electrolux and Whirlpool, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Electrolux 0 1 0 0 2.00
Whirlpool 1 5 2 0 2.13

Whirlpool has a consensus target price of $185.80, suggesting a potential upside of 20.99%. Given Whirlpool’s stronger consensus rating and higher probable upside, analysts plainly believe Whirlpool is more favorable than Electrolux.

Insider & Institutional Ownership

0.0% of Electrolux shares are owned by institutional investors. Comparatively, 90.3% of Whirlpool shares are owned by institutional investors. 5.0% of Electrolux shares are owned by insiders. Comparatively, 2.8% of Whirlpool shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Electrolux has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Whirlpool has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Dividends

Electrolux pays an annual dividend of $1.72 per share and has a dividend yield of 2.9%. Whirlpool pays an annual dividend of $4.40 per share and has a dividend yield of 2.9%. Electrolux pays out 36.9% of its earnings in the form of a dividend. Whirlpool pays out 32.0% 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. Whirlpool has increased its dividend for 7 consecutive years.

Summary

Whirlpool beats Electrolux on 9 of the 17 factors compared between the two stocks.

About Electrolux

AB Electrolux (publ), together with its subsidiaries, manufactures and sells household appliances and appliances for professional use. It operates through six segments: Major Appliances Europe, Middle East and Africa; Major Appliances North America; Major Appliances Latin America; Major Appliances Asia/Pacific; Home Care & Small Domestics Appliances; and Professional Products. The company offers various appliances, such as refrigerators, freezers, cookers, dryers, washing machines, dishwashers, room air-conditioners, microwave ovens, floor-care products, vacuum cleaners, and other small domestic appliances for consumers. It also provides professional products, including food-service equipment for hotels, restaurants, and institutions, as well as laundry equipment for apartment-house laundry rooms, launderettes, hotels, and other professional users. In addition, the company offers hobs, ovens, and hoods for households and professional kitchens; tumble dryers; and water heaters and heat pumps, as well as consumables, accessories, and services. It provides its products under the Electrolux, AEG, Zanussi, Frigidaire, Anova, and Westinghouse brands. The company sells its products to retailers, buying groups, independent stores, and professional users. AB Electrolux (publ) was founded in 1901 and is headquartered in Stockholm, Sweden.

About Whirlpool

Whirlpool Corporation manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company's principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other small domestic appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products primarily under the Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit, and Hotpoint. Whirlpool Corporation sells its products to retailers, distributors, dealers, builders, and other manufacturers. The company was founded in 1898 and is headquartered in Benton Harbor, Michigan.

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