Newell Brands (NYSE: NWL) and Tupperware Brands Corporation (NYSE:TUP) are both mid-cap consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional & Insider Ownership
94.4% of Newell Brands shares are held by institutional investors. Comparatively, 89.4% of Tupperware Brands Corporation shares are held by institutional investors. 1.0% of Newell Brands shares are held by insiders. Comparatively, 3.2% of Tupperware Brands Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Newell Brands and Tupperware Brands Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tupperware Brands Corporation||0||1||1||0||2.50|
Newell Brands presently has a consensus target price of $57.83, suggesting a potential upside of 15.67%. Tupperware Brands Corporation has a consensus target price of $68.50, suggesting a potential upside of 17.68%. Given Tupperware Brands Corporation’s higher possible upside, analysts plainly believe Tupperware Brands Corporation is more favorable than Newell Brands.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. Tupperware Brands Corporation pays an annual dividend of $2.72 per share and has a dividend yield of 4.7%. Newell Brands pays out 36.9% of its earnings in the form of a dividend. Tupperware Brands Corporation pays out 87.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Newell Brands has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Tupperware Brands Corporation has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Earnings and Valuation
This table compares Newell Brands and Tupperware Brands Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Newell Brands||$15.41 billion||1.57||$2.68 billion||$2.49||20.08|
|Tupperware Brands Corporation||$2.25 billion||1.32||$392.60 million||$3.10||18.78|
Newell Brands has higher revenue and earnings than Tupperware Brands Corporation. Tupperware Brands Corporation is trading at a lower price-to-earnings ratio than Newell Brands, indicating that it is currently the more affordable of the two stocks.
This table compares Newell Brands and Tupperware Brands Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tupperware Brands Corporation||7.00%||102.71%||14.11%|
Newell Brands beats Tupperware Brands Corporation on 10 of the 17 factors compared between the two stocks.
About Newell Brands
Newell Brands Inc. is a marketer of consumer and commercial products. The Company’s segments include Writing, Home Solutions, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions and Process Solutions. Its products are marketed under a portfolio of brands, including Paper Mate, Sharpie, Dymo, Expo, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle. Writing segment consists of the Writing and Creative Expression business. Home Solutions segment designs, manufactures or sources and distributes a range of consumer products under various brand names. Commercial Products segment designs, manufactures or sources and distributes cleaning and refuse products. Its Baby & Parenting segment designs and distributes infant and juvenile products.
About Tupperware Brands Corporation
Tupperware Brands Corporation is a global direct-to-consumer company. The Company operates through five segments in three geographic regions: Europe (Europe, Africa and the Middle East), Asia Pacific and the Americas. Its segments are Europe, Asia Pacific, Tupperware North America, Beauty North America and South America. Its Europe, Asia Pacific and Tupperware North America segments include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand. The Europe segment includes Avroy Shlain in South Africa and Nutrimetics in France, which sell beauty and personal care products. The Beauty North America segment offers cosmetics, skin care and personal care products marketed under the BeautiControl brand in the United States, Canada and Puerto Rico, and the Fuller Cosmetics brands in Mexico and Central America. The South America segment offers housewares and beauty products under the Fuller, Nutrimetics, Nuvo and Tupperware brands.
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