Energizer (NYSE:ENR) versus Spectrum Brands (NYSE:SPB) Head to Head Comparison

Energizer (NYSE:ENR) and Spectrum Brands (NYSE:SPB) are both consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Risk & Volatility

Energizer has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Energizer and Spectrum Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energizer	$2.99 billion	0.56	$239.00 million	$1.18	20.59
Spectrum Brands	$2.81 billion	0.76	$99.70 million	$3.28	28.32

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

Insider and Institutional Ownership

93.7% of Energizer shares are owned by institutional investors. 1.6% of Energizer shares are owned by company insiders. Comparatively, 4.5% of Spectrum Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Energizer	2.73%	122.63%	4.72%
Spectrum Brands	2.76%	10.06%	5.49%

Analyst Ratings

This is a summary of recent ratings for Energizer and Spectrum Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energizer	1	6	0	0	1.86
Spectrum Brands	0	4	4	0	2.50

Energizer presently has a consensus price target of $21.50, indicating a potential downside of 11.50%. Spectrum Brands has a consensus price target of $97.86, indicating a potential upside of 5.34%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Spectrum Brands is more favorable than Energizer.

Dividends

Energizer pays an annual dividend of $1.20 per share and has a dividend yield of 4.9%. Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 2.0%. Energizer pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spectrum Brands pays out 57.3% of its earnings in the form of a dividend. Spectrum Brands has raised its dividend for 1 consecutive years.

Summary

Spectrum Brands beats Energizer on 11 of the 17 factors compared between the two stocks.

About Energizer

Energizer Holdings, Inc. develops, manufactures and markets batteries, portable lighting and automotive care products. Its battery offerings include alkaline, lithium, rechargeable and specialty batteries for consumer and commercial uses. The company sells products under brands including Energizer, Eveready and Rayovac. Its automotive care portfolio includes Armor All, STP and A/C Pro products, such as cleaners, protectants and vehicle maintenance items. Headquartered in St. Louis, Missouri, Energizer serves customers in North America and international markets through retail, e-commerce and other sales channels.

About Spectrum Brands

Spectrum Brands Holdings, Inc. is a global consumer products company that develops, manufactures and markets products for homes, pets and gardens. Its businesses serve consumers through a portfolio of established brands and retail, e-commerce and other distribution channels. The company’s Home and Personal Care products include small kitchen appliances, personal care devices and home appliances sold under brands such as Remington, Russell Hobbs, George Foreman and Black+Decker, under license. Its Global Pet Care business offers products for aquatic pets, companion animals and pet health, including brands such as Tetra, DreamBone and Nature’s Miracle.