Head-To-Head Survey: WD-40 (NASDAQ:WDFC) vs. Reckitt Benckiser Group (OTCMKTS:RBGLY)

WD-40 (NASDAQ:WDFC) and Reckitt Benckiser Group (OTCMKTS:RBGLY) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Profitability

This table compares WD-40 and Reckitt Benckiser Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	13.23%	33.53%	18.97%
Reckitt Benckiser Group	N/A	N/A	N/A

Insider & Institutional Ownership

91.5% of WD-40 shares are held by institutional investors. Comparatively, 0.1% of Reckitt Benckiser Group shares are held by institutional investors. 0.8% of WD-40 shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

WD-40 has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Reckitt Benckiser Group has a beta of 0.41, meaning that its stock price is 59% 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%. Reckitt Benckiser Group pays an annual dividend of $0.64 per share and has a dividend yield of 4.4%. WD-40 pays out 62.0% of its earnings in the form of a dividend. WD-40 has increased its dividend for 17 consecutive years.

Valuation and Earnings

This table compares WD-40 and Reckitt Benckiser Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$674.68 million	4.67	$90.99 million	$6.58	35.70
Reckitt Benckiser Group	$18.73 billion	2.48	$4.20 billion	N/A	N/A

Reckitt Benckiser Group has higher revenue and earnings than WD-40.

Analyst Recommendations

This is a summary of recent recommendations for WD-40 and Reckitt Benckiser Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WD-40	0	2	2	2	3.00
Reckitt Benckiser Group	1	2	3	2	2.75

WD-40 presently has a consensus price target of $305.00, indicating a potential upside of 29.83%. Given WD-40’s stronger consensus rating and higher probable upside, equities research analysts plainly believe WD-40 is more favorable than Reckitt Benckiser Group.

Summary

WD-40 beats Reckitt Benckiser Group on 9 of the 15 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 Reckitt Benckiser Group

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products worldwide. It offers acne treatment creams, facial washes, and cleansing pads; germ protection products; condoms; heartburn and indigestion solutions; joints health products; chest congestion, cough, and sinus remedies; brain health products; migraine-headaches and rheumatic pain products; sore throat medications; and hair removal products under the Airborne, Clearasil, Dettol, Durex, Gaviscon, Move Free, Neuriva, Nurofen, Mucinex, Strepsils, and Veet brands. The company also offers home fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfecting sprays wipes, laundry sanitisers, and others; sprays, baits, and plug-ins for pest control; stain removals; and fabric washing under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands. In addition, it provides nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.