Zep (NYSE: ZEP) and Church & Dwight (NYSE:CHD) are both non-cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Insider & Institutional Ownership
82.1% of Church & Dwight shares are owned by institutional investors. 2.0% of Church & Dwight shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current recommendations for Zep and Church & Dwight, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Church & Dwight||3||7||1||0||1.82|
Church & Dwight has a consensus price target of $51.11, indicating a potential upside of 3.01%. Given Church & Dwight’s higher possible upside, analysts plainly believe Church & Dwight is more favorable than Zep.
This table compares Zep and Church & Dwight’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Church & Dwight||12.39%||24.21%||10.72%|
Church & Dwight pays an annual dividend of $0.76 per share and has a dividend yield of 1.5%. Zep does not pay a dividend. Church & Dwight pays out 45.0% of its earnings in the form of a dividend. Zep has raised its dividend for 4 consecutive years and Church & Dwight has raised its dividend for 11 consecutive years.
Valuation & Earnings
This table compares Zep and Church & Dwight’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Church & Dwight||$3.54 billion||3.49||$845.20 million||$1.69||29.36|
Church & Dwight has higher revenue and earnings than Zep.
Church & Dwight beats Zep on 10 of the 11 factors compared between the two stocks.
Zep Company Profile
Zep Inc. is a consumable chemical packaged goods company, providing a variety of chemicals and related products and services that help professionals maintain, clean and protect their assets. The Company markets its products and services under brand names, including Zep, Zep Professional, Zep Commercial, Zep Automotive and other Zep Inc. brands. Its product portfolio, which is produced using more than 4,000 formulations, includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, pest- and weed-control products, air-care products and delivery systems and a variety of automotive maintenance chemicals. The Company manufactures its products at nine facilities located in the United States, Canada, the Netherlands, Italy, and United Kingdom.
Church & Dwight Company Profile
Church & Dwight Co., Inc. develops, manufactures and markets a range of household, personal care and specialty products. The Company’s segments include Consumer Domestic, Consumer International and Specialty Products Division (SPD). The Company also sells specialty products to industrial customers and distributors. The Consumer Domestic segment includes various brands, as well as other household and personal care products, such as KABOOM cleaning products, ARRID antiperspirant, CLOSE-UP and AIM toothpastes and SIMPLY SALINE nasal saline moisturizer. The Consumer International segment markets a range of personal care products, household and over-the-counter products in international markets, including Canada, France, China, Australia, the United Kingdom, Mexico and Brazil. The Company’s SPD segment is a producer of sodium bicarbonate, which it sells together with other specialty inorganic chemicals for various industrial, institutional, medical and food applications.
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