Financial Comparison: Newell Brands (NWL) vs. Myers Industries (MYE)

Newell Brands (NYSE: NWL) and Myers Industries (NYSE:MYE) are both consumer staples companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Risk and Volatility

Newell Brands has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Myers Industries has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares Newell Brands and Myers Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Newell Brands $14.74 billion 0.83 $2.75 billion $2.75 9.17
Myers Industries $547.04 million 1.17 -$9.88 million $0.51 36.27

Newell Brands has higher revenue and earnings than Myers Industries. Newell Brands is trading at a lower price-to-earnings ratio than Myers Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 3.6%. Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 2.9%. Newell Brands pays out 33.5% of its earnings in the form of a dividend. Myers Industries pays out 105.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Newell Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Newell Brands and Myers Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newell Brands 14.93% 10.05% 3.99%
Myers Industries -1.06% 19.40% 5.11%

Institutional & Insider Ownership

96.7% of Newell Brands shares are held by institutional investors. Comparatively, 84.9% of Myers Industries shares are held by institutional investors. 1.0% of Newell Brands shares are held by company insiders. Comparatively, 0.8% of Myers Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Newell Brands and Myers Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newell Brands 0 12 4 0 2.25
Myers Industries 1 0 1 0 2.00

Newell Brands presently has a consensus target price of $31.29, suggesting a potential upside of 24.00%. Myers Industries has a consensus target price of $19.50, suggesting a potential upside of 5.41%. Given Newell Brands’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Newell Brands is more favorable than Myers Industries.

Summary

Newell Brands beats Myers Industries on 11 of the 16 factors compared between the two stocks.

Newell Brands Company Profile

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.

Myers Industries Company Profile

Myers Industries, Inc. manufactures and sells polymer products for industrial, agricultural, automotive, commercial, and consumer markets worldwide. The company's Material Handling segment provides plastic reusable material handling containers, pallets, small parts bins, bulk shipping containers, storage and organization products, and rotationally-molded plastic tanks for water, fuel, and waste handling applications; welded steel service carts, platform trucks, mobile work centers, racks, and cabinets; plastic trim and interior parts used in the production of seat components, consoles, and other applications in the recreational vehicle, marine, and industrial markets; and plastic fuel containers, portable marine fuel tanks and water containers, ammunition containers, and storage totes under the Buckhorn, Akro-Mils, Jamco Products, Ameri-Kart, and Scepter brands. This segment serves industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and other industries directly and through distributors. Its Distribution segment offers tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment, hand tools, tire repair and retread supplies, highway markings, industrial rubber, tire pressure monitoring systems, general shop supplies; and brake, transmission, and service equipment and supplies. It offers products under the Myers Tire Supply, Myers Tire Supply International, and Patch Rubber Company, Elrick, Fleetline, MTS, Phoenix, and Seymoure brands. This segment serves retail tire, truck tire, and auto dealers; commercial auto and truck fleets; general service and repair centers; tire retreaders and repair; governmental agencies; telecommunications; industrial; road construction; and mining markets. The company was founded in 1933 and is headquartered in Akron, Ohio.

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