Critical Contrast: Kellanova (NYSE:K) and Olaplex (NASDAQ:OLPX)

Kellanova (NYSE:K) and Olaplex (NASDAQ:OLPX) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kellanova and Olaplex, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kellanova	0	4	0	0	2.00
Olaplex	2	3	1	0	1.83

Kellanova presently has a consensus price target of $83.50, suggesting a potential upside of 0.11%. Olaplex has a consensus price target of $1.81, suggesting a potential upside of 78.57%. Given Olaplex’s higher probable upside, analysts plainly believe Olaplex is more favorable than Kellanova.

Valuation and Earnings

This table compares Kellanova and Olaplex”s gross 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
Olaplex	$422.67 million	1.60	$19.52 million	N/A	N/A

Kellanova has higher revenue and earnings than Olaplex.

Volatility & Risk

Kellanova has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Olaplex has a beta of 2.29, meaning that its stock price is 129% more volatile than the S&P 500.

Profitability

This table compares Kellanova and Olaplex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kellanova	10.56%	32.54%	8.23%
Olaplex	-1.18%	1.31%	0.70%

Institutional and Insider Ownership

83.9% of Kellanova shares are owned by institutional investors. Comparatively, 87.4% of Olaplex shares are owned by institutional investors. 1.8% of Kellanova shares are owned by company insiders. Comparatively, 4.2% of Olaplex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Kellanova beats Olaplex on 7 of the 13 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 Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.