The Middleby Corporation (NASDAQ: MIDD) and Newell Brands (NYSE:NWL) are both mid-cap industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
Risk and Volatility
The Middleby Corporation has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
This is a summary of current recommendations for The Middleby Corporation and Newell Brands, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The Middleby Corporation||0||3||4||0||2.57|
The Middleby Corporation presently has a consensus price target of $141.67, indicating a potential upside of 22.06%. Newell Brands has a consensus price target of $57.83, indicating a potential upside of 16.46%. Given The Middleby Corporation’s higher possible upside, research analysts plainly believe The Middleby Corporation is more favorable than Newell Brands.
Newell Brands pays an annual dividend of $0.92 per share and has a dividend yield of 1.9%. The Middleby Corporation does not pay a dividend. Newell Brands pays out 36.9% of its earnings in the form of a dividend.
Institutional & Insider Ownership
95.3% of The Middleby Corporation shares are held by institutional investors. Comparatively, 94.9% of Newell Brands shares are held by institutional investors. 2.0% of The Middleby Corporation shares are held by company insiders. Comparatively, 1.0% of Newell Brands 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.
Valuation and Earnings
This table compares The Middleby Corporation and Newell Brands’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|The Middleby Corporation||$2.28 billion||2.93||$535.17 million||$5.33||21.77|
|Newell Brands||$15.41 billion||1.58||$2.63 billion||$2.49||19.94|
Newell Brands has higher revenue and earnings than The Middleby Corporation. Newell Brands is trading at a lower price-to-earnings ratio than The Middleby Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares The Middleby Corporation and Newell Brands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The Middleby Corporation||13.38%||23.05%||10.38%|
The Middleby Corporation beats Newell Brands on 11 of the 17 factors compared between the two stocks.
The Middleby Corporation Company Profile
The Middleby Corporation is engaged in the design, manufacture and sale of commercial foodservice, food processing equipment and residential kitchen equipment. The Company operates in three segments: the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. It is also engaged in the design, manufacture, marketing, distribution and service of a range of foodservice equipment used in commercial restaurants and institutional kitchens; food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and kitchen equipment, including ranges, ovens, refrigerators, ventilation and dishwashers used in the residential market. It manufactured and assembled the equipment at 28 facilities in the United States, and 23 international manufacturing facilities as of December 31, 2016. Its brands include Anets, Beech, Blodgett, Blodgett Combi, Stewart Systems, Mercury, Rangemaster, Rayburn and Redfyre.
Newell Brands Company Profile
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.
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