Acco Brands Corporation (NYSE: ACCO) and Cott Corporation (NYSE:COT) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Risk and Volatility
Acco Brands Corporation has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Cott Corporation has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.
This table compares Acco Brands Corporation and Cott Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acco Brands Corporation||3.25%||15.03%||4.39%|
Cott Corporation pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. Acco Brands Corporation does not pay a dividend. Cott Corporation pays out -23.3% of its earnings in the form of a dividend.
Institutional and Insider Ownership
91.4% of Acco Brands Corporation shares are owned by institutional investors. 4.5% of Acco Brands Corporation shares are owned by company insiders. Comparatively, 2.1% of Cott Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Acco Brands Corporation and Cott Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Acco Brands Corporation||$1.72 billion||0.69||$256.30 million||$0.51||21.37|
|Cott Corporation||$3.68 billion||0.57||$377.00 million||($1.03)||-14.74|
Cott Corporation has higher revenue and earnings than Acco Brands Corporation. Cott Corporation is trading at a lower price-to-earnings ratio than Acco Brands Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Acco Brands Corporation and Cott Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acco Brands Corporation||0||0||1||0||3.00|
Acco Brands Corporation currently has a consensus target price of $18.00, suggesting a potential upside of 65.14%. Cott Corporation has a consensus target price of $17.04, suggesting a potential upside of 12.26%. Given Acco Brands Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Acco Brands Corporation is more favorable than Cott Corporation.
Acco Brands Corporation beats Cott Corporation on 10 of the 16 factors compared between the two stocks.
About Acco Brands Corporation
ACCO Brands Corporation is engaged in designing, marketing and manufacturing of branded business, academic and selected consumer products. The Company operates through three segments: ACCO Brands North America, ACCO Brands International and Computer Products Group. The Company’s brands include Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra and Wilson Jones. The Company’s ACCO Brands North America and ACCO Brands International design, market, source, manufacture and sell traditional office products, academic supplies and calendar products. ACCO Brands North America consists of the United States and Canada, and ACCO Brands International consists of the rest of the world, primarily Northern Europe, Australia, Brazil and Mexico. Its Computer Products Group designs, sources, distributes, markets and sells accessories for laptop and desktop computers and tablets.
About Cott Corporation
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.
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