Contrasting Henkel AG & Co. (OTCMKTS:HENKY) and Krispy Kreme (NASDAQ:DNUT)

Krispy Kreme (NASDAQ:DNUT) and Henkel AG & Co. (OTCMKTS:HENKY) are both consumer staples companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Krispy Kreme and Henkel AG & Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Krispy Kreme	3	5	3	0	2.00
Henkel AG & Co.	0	3	0	1	2.50

Krispy Kreme currently has a consensus price target of $5.59, suggesting a potential upside of 84.35%. Given Krispy Kreme’s higher probable upside, equities analysts clearly believe Krispy Kreme is more favorable than Henkel AG & Co..

Profitability

This table compares Krispy Kreme and Henkel AG & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Krispy Kreme	-33.27%	-5.13%	-1.67%
Henkel AG & Co.	N/A	N/A	N/A

Earnings & Valuation

This table compares Krispy Kreme and Henkel AG & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Krispy Kreme	$1.67 billion	0.31	$3.10 million	($2.99)	-1.01
Henkel AG & Co.	$23.36 billion	1.68	$2.17 billion	N/A	N/A

Henkel AG & Co. has higher revenue and earnings than Krispy Kreme.

Insider and Institutional Ownership

81.7% of Krispy Kreme shares are held by institutional investors. Comparatively, 0.0% of Henkel AG & Co. shares are held by institutional investors. 3.0% of Krispy Kreme shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Krispy Kreme has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Henkel AG & Co. has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Summary

Henkel AG & Co. beats Krispy Kreme on 8 of the 13 factors compared between the two stocks.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.