Newell Brands (NASDAQ:NWL – Get Free Report) and Krispy Kreme (NASDAQ:DNUT – Get Free Report) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.
Insider & Institutional Ownership
92.5% of Newell Brands shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 0.7% of Newell Brands shares are owned by company insiders. Comparatively, 3.0% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Newell Brands and Krispy Kreme”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Newell Brands | $7.20 billion | 0.26 | -$285.00 million | ($0.68) | -6.63 |
| Krispy Kreme | $1.67 billion | 0.31 | $3.10 million | ($2.99) | -1.01 |
Krispy Kreme has lower revenue, but higher earnings than Newell Brands. Newell Brands is trading at a lower price-to-earnings ratio than Krispy Kreme, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations for Newell Brands and Krispy Kreme, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Newell Brands | 1 | 5 | 4 | 0 | 2.30 |
| Krispy Kreme | 3 | 5 | 3 | 0 | 2.00 |
Newell Brands currently has a consensus price target of $6.11, suggesting a potential upside of 35.65%. Krispy Kreme has a consensus price target of $5.59, suggesting a potential upside of 84.96%. Given Krispy Kreme’s higher possible upside, analysts clearly believe Krispy Kreme is more favorable than Newell Brands.
Volatility and Risk
Newell Brands has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Profitability
This table compares Newell Brands and Krispy Kreme’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Newell Brands | -3.96% | 9.17% | 2.14% |
| Krispy Kreme | -33.27% | -5.13% | -1.67% |
Summary
Newell Brands beats Krispy Kreme on 8 of the 14 factors compared between the two stocks.
About Newell Brands
Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.
About Krispy Kreme
Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.
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