Reynolds Consumer Products (NASDAQ:REYN – Get Free Report) and Oil-Dri Corporation Of America (NYSE:ODC – Get Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Insider and Institutional Ownership
26.8% of Reynolds Consumer Products shares are held by institutional investors. Comparatively, 49.0% of Oil-Dri Corporation Of America shares are held by institutional investors. 0.4% of Reynolds Consumer Products shares are held by company insiders. Comparatively, 11.7% of Oil-Dri Corporation Of America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Reynolds Consumer Products has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Oil-Dri Corporation Of America has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reynolds Consumer Products | $3.79 billion | 1.22 | $301.00 million | $1.64 | 13.40 |
| Oil-Dri Corporation Of America | $485.57 million | 2.52 | $54.00 million | $3.89 | 21.67 |
Reynolds Consumer Products has higher revenue and earnings than Oil-Dri Corporation Of America. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Oil-Dri Corporation Of America, indicating that it is currently the more affordable of the two stocks.
Dividends
Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 4.2%. Oil-Dri Corporation Of America pays an annual dividend of $0.90 per share and has a dividend yield of 1.1%. Reynolds Consumer Products pays out 56.1% of its earnings in the form of a dividend. Oil-Dri Corporation Of America pays out 23.1% 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. Oil-Dri Corporation Of America has increased its dividend for 11 consecutive years.
Profitability
This table compares Reynolds Consumer Products and Oil-Dri Corporation Of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reynolds Consumer Products | 9.11% | 16.03% | 7.28% |
| Oil-Dri Corporation Of America | 11.35% | 20.53% | 14.17% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Reynolds Consumer Products and Oil-Dri Corporation Of America, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reynolds Consumer Products | 0 | 7 | 1 | 0 | 2.12 |
| Oil-Dri Corporation Of America | 0 | 0 | 1 | 0 | 3.00 |
Reynolds Consumer Products currently has a consensus target price of $25.60, suggesting a potential upside of 16.47%. Given Reynolds Consumer Products’ higher possible upside, analysts plainly believe Reynolds Consumer Products is more favorable than Oil-Dri Corporation Of America.
Summary
Oil-Dri Corporation Of America beats Reynolds Consumer Products on 12 of the 16 factors compared between the two stocks.
About Reynolds Consumer Products
Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.
About Oil-Dri Corporation Of America
Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.
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