Analyzing Cott Corp (COT) and Knoll (KNL)

Cott Corp (NYSE: COT) and Knoll (NYSE:KNL) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Cott Corp has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Knoll has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Insider and Institutional Ownership

98.0% of Knoll shares are held by institutional investors. 2.1% of Cott Corp shares are held by company insiders. Comparatively, 1.9% of Knoll shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Cott Corp and Knoll’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cott Corp $3.68 billion 0.57 $377.00 million ($1.03) -14.74
Knoll $1.11 billion 0.80 $141.65 million $1.45 12.51

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Cott Corp and Knoll, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cott Corp 0 2 4 0 2.67
Knoll 0 1 1 0 2.50

Cott Corp currently has a consensus target price of $17.04, suggesting a potential upside of 12.26%. Knoll has a consensus target price of $27.00, suggesting a potential upside of 48.84%. Given Knoll’s higher probable upside, analysts clearly believe Knoll is more favorable than Cott Corp.

Profitability

This table compares Cott Corp and Knoll’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cott Corp -2.20% -11.88% -2.10%
Knoll 6.43% 23.64% 8.51%

Dividends

Cott Corp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Knoll pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. Cott Corp pays out -23.3% of its earnings in the form of a dividend. Knoll pays out 41.4% 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. Cott Corp has raised its dividend for 2 consecutive years.

Summary

Knoll beats Cott Corp on 9 of the 16 factors compared between the two stocks.

About Cott Corp

Cott Corp is a Canada-based company, which along with its subsidiaries, is engaged in production of beverages on behalf of retailers, brand owners and distributors. The Company operates through five operating segments: Water & Coffee Solutions; Cott North America; Cott United Kingdom (Cott U.K.), Royal Crown International (RCI) and Mexico. Water & Coffee Solutions segment provides direct-to-consumer products, such as bottled water, coffee, brewed tea, water dispensers, coffee and tea brewers, and filtration equipment. Its traditional business consists of its Cott North America, Cott U.K. and All Other segments. Its traditional business produces products, including carbonated soft drinks, shelf stable juice and juice-based products, clear, still and sparkling flavored waters, energy drinks and shots, sports drinks, new age beverages, ready-to liquid enhancers, freezables, hot chocolate, creamers/whiteners, cereals and beverage concentrates directly or through third-party manufacturers.

About Knoll

Knoll, Inc. is a manufacturer of commercial and residential furniture, accessories and coverings. The Company operates through three segments: Office, Studio and Coverings. The Office segment includes a range of workplace products that address workplace planning paradigms. These products include systems furniture, seating, storage, tables, desks and KnollExtra accessories, as well as the international sales of its North American Office products. The Studio segment includes KnollStudio products, DatesWeiser, HOLLY HUNT and Knoll Europe. The Coverings segment includes KnollTextiles, Spinneybeck (including Filzfelt), and Edelman Leather. These businesses provide a range of customers with fabrics, felt, leather and related architectural products. KnollStudio products include iconic seating, lounge furniture, side, cafe and dining chairs, as well as conference, training, dining and occasional tables.

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