Critical Analysis: Newell Brands (NASDAQ:NWL) & Fenbo (NASDAQ:FEBO)

Newell Brands (NASDAQ:NWL) and Fenbo (NASDAQ:FEBO) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional and Insider Ownership

92.5% of Newell Brands shares are held by institutional investors. Comparatively, 0.0% of Fenbo shares are held by institutional investors. 0.7% of Newell Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Newell Brands and Fenbo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-0.33%	8.64%	2.08%
Fenbo	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Newell Brands and Fenbo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	1	5	4	0	2.30
Fenbo	1	0	0	0	1.00

Newell Brands currently has a consensus target price of $5.86, suggesting a potential upside of 86.36%. Given Newell Brands’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Newell Brands is more favorable than Fenbo.

Volatility and Risk

Newell Brands has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Fenbo has a beta of -1.35, meaning that its stock price is 235% less volatile than the S&P 500.

Earnings and Valuation

This table compares Newell Brands and Fenbo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.58 billion	0.17	-$216.00 million	($0.06)	-52.42
Fenbo	$17.11 million	0.49	-$1.99 million	N/A	N/A

Fenbo has lower revenue, but higher earnings than Newell Brands.

Summary

Newell Brands beats Fenbo on 9 of the 12 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 Fenbo

Fenbo Holdings Limited, through its subsidiaries, manufactures and sells personal care electric appliances and toys products. The company offers curling wands and irons, flat irons and hair straighteners, hair dryers, trimmers, nail polishers, pet shampoo brushes, eyebrow pliers, etc. It serves customers in Europe, North America, South America, Asia, and internationally. The company was founded in 1993 and is headquartered in Kwun Tong, Hong Kong. Fenbo Holdings Limited operates as a subsidiary of Luxury Max Investments Limited.