Berry Global Group (NYSE: BERY) and Newell Brands (NYSE:NWL) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.
This table compares Berry Global Group and Newell Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Berry Global Group||6.24%||41.40%||5.20%|
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 3.6%. Berry Global Group does not pay a dividend. Newell Brands pays out 33.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Berry Global Group and Newell Brands’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Berry Global Group||$7.10 billion||0.85||$340.00 million||$3.07||14.96|
|Newell Brands||$14.74 billion||0.85||$2.75 billion||$2.75||9.38|
Newell Brands has higher revenue and earnings than Berry Global Group. Newell Brands is trading at a lower price-to-earnings ratio than Berry Global Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Berry Global Group has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Newell Brands has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
This is a summary of current recommendations for Berry Global Group and Newell Brands, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Berry Global Group||0||1||12||0||2.92|
Berry Global Group presently has a consensus price target of $67.09, indicating a potential upside of 46.04%. Newell Brands has a consensus price target of $31.29, indicating a potential upside of 21.31%. Given Berry Global Group’s stronger consensus rating and higher probable upside, analysts clearly believe Berry Global Group is more favorable than Newell Brands.
Insider and Institutional Ownership
94.2% of Berry Global Group shares are held by institutional investors. Comparatively, 96.7% of Newell Brands shares are held by institutional investors. 3.0% of Berry Global Group shares are held by insiders. Comparatively, 1.0% of Newell Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Berry Global Group beats Newell Brands on 11 of the 16 factors compared between the two stocks.
About Berry Global Group
Berry Global Group, Inc. manufactures and distributes engineered materials, nonwoven specialty materials, and consumer packaging products. The company operates through three segments: Engineered Materials; Health, Hygiene & Specialties; and Consumer Packaging. It offers engineered materials, including stretch and shrink films, and converter films; trash-can liners and food bags; cloth and foil, splicing and laminating, flame-retardant, vinyl-coated and carton sealing, electrical, double-faced cloth, masking, mounting, OEM, and medical and specialty tapes; and food and consumer films, retail bags, and polyvinyl chloride films. The company also provides components for baby diapers and other absorbent hygiene products, feminine hygiene products, medical garment materials, substrates for dryer sheets, household cleaning wipes, filters, protective house wraps, and specialty agriculture and industrial products; components for adult incontinence, surgical drapes, face masks, corrosion protection, cable wrap, geosynthetics, and specialty filtration products; and a range of products for baby care, infection prevention, and food and household packaging. In addition, it offers containers; foodservice products, such as thermoformed polypropylene and injection-molded plastic drink cups and lids; closures and over caps comprising continuous-thread and child-resistant closures, as well as aerosol over caps; bottle and prescription containers; and extruded and laminate tubes. The company primarily serves healthcare, personal care, and food and beverage markets through direct sales force and distributors in North America, South America, Europe, and Asia. The company was formerly known as Berry Plastics Group, Inc. and changed its name to Berry Global Group, Inc. in April 2017. Berry Global Group, Inc. was founded in 1967 and is headquartered in Evansville, Indiana.
About Newell Brands
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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