Comparing WD-40 (NASDAQ:WDFC) and Procter & Gamble (NYSE:PG)

WD-40 (NASDAQ:WDFC) and Procter & Gamble (NYSE:PG) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Valuation & Earnings

This table compares WD-40 and Procter & Gamble”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$619.98 million	5.34	$90.99 million	$5.88	41.85
Procter & Gamble	$84.28 billion	4.11	$15.97 billion	$6.84	21.72

Procter & Gamble has higher revenue and earnings than WD-40. Procter & Gamble is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

WD-40 has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Procter & Gamble has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Dividends

WD-40 pays an annual dividend of $4.08 per share and has a dividend yield of 1.7%. Procter & Gamble pays an annual dividend of $4.35 per share and has a dividend yield of 2.9%. WD-40 pays out 69.4% of its earnings in the form of a dividend. Procter & Gamble pays out 63.6% 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. WD-40 has raised its dividend for 17 consecutive years and Procter & Gamble has raised its dividend for 70 consecutive years. Procter & Gamble is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

91.5% of WD-40 shares are owned by institutional investors. Comparatively, 65.8% of Procter & Gamble shares are owned by institutional investors. 0.8% of WD-40 shares are owned by insiders. Comparatively, 0.2% of Procter & Gamble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for WD-40 and Procter & Gamble, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WD-40	0	1	2	0	2.67
Procter & Gamble	0	10	11	0	2.52

WD-40 presently has a consensus target price of $270.00, suggesting a potential upside of 9.73%. Procter & Gamble has a consensus target price of $160.78, suggesting a potential upside of 8.21%. Given WD-40’s stronger consensus rating and higher probable upside, equities analysts plainly believe WD-40 is more favorable than Procter & Gamble.

Profitability

This table compares WD-40 and Procter & Gamble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	12.57%	30.23%	17.15%
Procter & Gamble	19.16%	32.00%	13.27%

Summary

Procter & Gamble beats WD-40 on 10 of the 17 factors compared between the two stocks.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.