Critical Analysis: Energizer (NYSE:ENR) versus Ollie’s Bargain Outlet (NASDAQ:OLLI)

Energizer (NYSE:ENR) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Energizer and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energizer	7.11%	143.24%	5.08%
Ollie’s Bargain Outlet	9.08%	13.18%	8.43%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Energizer and Ollie’s Bargain Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energizer	0	7	1	0	2.13
Ollie’s Bargain Outlet	0	3	13	0	2.81

Energizer presently has a consensus target price of $25.29, indicating a potential upside of 47.05%. Ollie’s Bargain Outlet has a consensus target price of $141.50, indicating a potential upside of 49.25%. Given Ollie’s Bargain Outlet’s stronger consensus rating and higher probable upside, analysts plainly believe Ollie’s Bargain Outlet is more favorable than Energizer.

Volatility & Risk

Energizer has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Institutional and Insider Ownership

93.7% of Energizer shares are owned by institutional investors. 1.6% of Energizer shares are owned by company insiders. Comparatively, 0.8% of Ollie’s Bargain Outlet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Energizer and Ollie’s Bargain Outlet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energizer	$2.95 billion	0.40	$239.00 million	$2.97	5.79
Ollie’s Bargain Outlet	$2.65 billion	2.19	$240.60 million	$3.90	24.31

Ollie’s Bargain Outlet has lower revenue, but higher earnings than Energizer. Energizer is trading at a lower price-to-earnings ratio than Ollie’s Bargain Outlet, indicating that it is currently the more affordable of the two stocks.

Summary

Ollie’s Bargain Outlet beats Energizer on 9 of the 14 factors compared between the two stocks.

About Energizer

Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer, Eveready, and Rayovac brands; primary, rechargeable, specialty, and hearing aid batteries; and handheld, headlights, lanterns, and area lights, as well as flashlights under the Hard Case, Dolphin, and WeatherReady brands. The company licenses the Energizer, Rayovac, and Eveready brands to companies developing consumer solutions in solar, automotive batteries, portable power for critical devices, generators, power tools, household light bulbs, and other lighting products. In addition, it designs and markets automotive fragrance and appearance products, including protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners, and washes to clean, shine, refresh, and protect interior and exterior automobile surfaces under the brand names of Armor All, Nu Finish, Refresh Your Car!, LEXOL, Eagle One, California Scents, Driven, Bahama & Co, Carnu, Grand Prix, Kit, and Tempo; STP branded fuel and oil additives, functional fluids, and other performance chemical products; and do-it-yourself automotive air conditioning recharge products under the A/C PRO brand name, as well as other refrigerant and recharge kits, sealants, and accessories. The company sells its products through direct sales force, distributors, and wholesalers; and various retail and business-to-business channels, including mass merchandisers, club, electronics, food, home improvement, dollar store, auto, drug, hardware, e-commerce, convenience, sporting goods, hobby/craft, office, industrial, medical, and catalog. Energizer Holdings, Inc. was incorporated in 2015 and is headquartered in Saint Louis, Missouri.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.