Clorox (NYSE:CLX) & Reynolds Consumer Products (NASDAQ:REYN) Head-To-Head Contrast

Clorox (NYSE:CLX) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Earnings & Valuation

This table compares Clorox and Reynolds Consumer Products”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clorox	$6.72 billion	1.96	$587.00 million	$5.56	19.57
Reynolds Consumer Products	$3.72 billion	1.43	$301.00 million	$1.53	16.50

Clorox has higher revenue and earnings than Reynolds Consumer Products. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Clorox, indicating that it is currently the more affordable of the two stocks.

Dividends

Clorox pays an annual dividend of $5.00 per share and has a dividend yield of 4.6%. Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 3.6%. Clorox pays out 89.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Reynolds Consumer Products pays out 60.1% of its earnings in the form of a dividend. Clorox has raised its dividend for 47 consecutive years. Clorox is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Clorox and Reynolds Consumer Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clorox	4	11	1	0	1.81
Reynolds Consumer Products	0	7	1	0	2.12

Clorox currently has a consensus price target of $93.79, suggesting a potential downside of 13.80%. Reynolds Consumer Products has a consensus price target of $25.20, suggesting a potential downside of 0.20%. Given Reynolds Consumer Products’ stronger consensus rating and higher probable upside, analysts clearly believe Reynolds Consumer Products is more favorable than Clorox.

Profitability

This table compares Clorox and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clorox	9.41%	608.30%	10.99%
Reynolds Consumer Products	8.53%	15.55%	7.10%

Insider & Institutional Ownership

78.5% of Clorox shares are held by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are held by institutional investors. 0.5% of Clorox shares are held by company insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Clorox has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500.

Summary

Clorox beats Reynolds Consumer Products on 13 of the 16 factors compared between the two stocks.

About Clorox

The Clorox Company is a consumer products company founded in 1913 and headquartered in Oakland, California. It makes and markets products for household cleaning, food, water filtration, personal care and pet care. Its portfolio includes Clorox disinfecting and cleaning products, Glad trash bags and food-storage products, Kingsford charcoal, Brita water filters, Hidden Valley dressings and sauces, Burt’s Bees personal-care products, and Fresh Step cat litter. The company also sells products under brands such as Pine-Sol and Liquid-Plumr.

About Reynolds Consumer Products

Reynolds Consumer Products manufactures and markets household products used for food preparation and storage, waste management, and foodservice. Its portfolio includes aluminum foil, parchment paper, baking products, food-storage bags and containers, trash bags, and disposable tableware. The company sells products under brands including Reynolds, Hefty, and Presto, as well as through private-label offerings. Its products are primarily sold in the United States and Canada through retailers and other distribution channels.