Spectrum Brands (NYSE:SPB) vs. Kellanova (NYSE:K) Head-To-Head Review

Kellanova (NYSE:K) and Spectrum Brands (NYSE:SPB) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Kellanova and Spectrum Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kellanova	0	4	0	0	2.00
Spectrum Brands	0	2	4	0	2.67

Kellanova currently has a consensus target price of $83.50, indicating a potential upside of 0.13%. Spectrum Brands has a consensus target price of $73.80, indicating a potential upside of 20.64%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Spectrum Brands is more favorable than Kellanova.

Valuation and Earnings

This table compares Kellanova and Spectrum Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kellanova	$12.67 billion	2.29	$1.34 billion	$3.64	22.91
Spectrum Brands	$2.96 billion	0.50	$124.80 million	$2.68	22.83

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

Institutional & Insider Ownership

83.9% of Kellanova shares are owned by institutional investors. 1.8% of Kellanova shares are owned by insiders. Comparatively, 3.9% of Spectrum Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Kellanova pays an annual dividend of $2.32 per share and has a dividend yield of 2.8%. Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 3.1%. Kellanova pays out 63.7% of its earnings in the form of a dividend. Spectrum Brands pays out 70.1% 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. Kellanova has increased its dividend for 1 consecutive years and Spectrum Brands has increased its dividend for 1 consecutive years.

Profitability

This table compares Kellanova and Spectrum Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kellanova	10.56%	32.54%	8.23%
Spectrum Brands	2.56%	5.27%	2.88%

Risk & Volatility

Kellanova has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Summary

Kellanova beats Spectrum Brands on 9 of the 16 factors compared between the two stocks.

About Kellanova

Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles. The company offers its products under the Kellogg’s, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr’s, Kellogg’s Extra, Müsli, Fruit n Fibre, Kellogg’s Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy’s, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, and Choco Krispies brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.