Financial Analysis: Kenvue (NYSE:KVUE) and Boyd Group Services (OTCMKTS:BYDGF)

Boyd Group Services (OTCMKTS:BYDGF) and Kenvue (NYSE:KVUE) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Boyd Group Services and Kenvue’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boyd Group Services	0.27%	2.70%	0.91%
Kenvue	10.61%	20.81%	8.21%

Dividends

Boyd Group Services pays an annual dividend of $0.44 per share and has a dividend yield of 0.3%. Kenvue pays an annual dividend of $0.83 per share and has a dividend yield of 4.2%. Boyd Group Services pays out 118.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenvue pays out 97.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kenvue has increased its dividend for 1 consecutive years. Kenvue is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Boyd Group Services has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Kenvue has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

0.2% of Boyd Group Services shares are owned by institutional investors. Comparatively, 97.6% of Kenvue shares are owned by institutional investors. 1.6% of Kenvue shares are owned 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 Boyd Group Services and Kenvue”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boyd Group Services	$3.07 billion	1.11	$24.54 million	$0.37	427.62
Kenvue	$15.29 billion	2.47	$1.47 billion	$0.85	23.18

Kenvue has higher revenue and earnings than Boyd Group Services. Kenvue is trading at a lower price-to-earnings ratio than Boyd Group Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Boyd Group Services and Kenvue, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boyd Group Services	0	0	3	0	3.00
Kenvue	0	12	3	1	2.31

Kenvue has a consensus target price of $19.33, indicating a potential downside of 1.89%. Given Kenvue’s higher probable upside, analysts plainly believe Kenvue is more favorable than Boyd Group Services.

Summary

Kenvue beats Boyd Group Services on 14 of the 17 factors compared between the two stocks.

About Boyd Group Services

Boyd Group Services Inc., together with its subsidiaries, operates non-franchised collision repair centers in North America. The company operates its locations under the Boyd Autobody & Glass and Assured Automotive names in Canada; and Gerber Collision & Glass name in the United States. It also operates as a retail auto glass operator under the Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com names in the United States. In addition, the company operates a third-party administrator, Gerber National Claims Services that offers glass, emergency roadside, and first notice of loss services. It serves insurance companies and individual vehicle owners. The company was founded in 1990 and is headquartered in Winnipeg, Canada.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.