Prestige Brands (NYSE: PBH) and Escalade (NASDAQ:ESCA) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
This table compares Prestige Brands and Escalade’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Escalade pays an annual dividend of $0.50 per share and has a dividend yield of 3.6%. Prestige Brands does not pay a dividend. Escalade pays out 50.5% of its earnings in the form of a dividend.
Insider & Institutional Ownership
26.7% of Escalade shares are held by institutional investors. 1.0% of Prestige Brands shares are held by insiders. Comparatively, 20.0% of Escalade shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for Prestige Brands and Escalade, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Prestige Brands presently has a consensus price target of $78.33, indicating a potential upside of 136.16%. Escalade has a consensus price target of $16.00, indicating a potential upside of 15.52%. Given Prestige Brands’ higher probable upside, equities research analysts plainly believe Prestige Brands is more favorable than Escalade.
Valuation and Earnings
This table compares Prestige Brands and Escalade’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prestige Brands||$882.06 million||1.99||$69.39 million||$7.29||4.55|
|Escalade||$177.33 million||1.12||$14.06 million||$0.99||13.99|
Prestige Brands has higher revenue and earnings than Escalade. Prestige Brands is trading at a lower price-to-earnings ratio than Escalade, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Prestige Brands has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Escalade has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.
Prestige Brands beats Escalade on 10 of the 16 factors compared between the two stocks.
Prestige Brands Company Profile
Prestige Brands Holdings, Inc., through its subsidiaries, markets, sells, manufactures, and distributes over-the-counter (OTC) healthcare and household cleaning products in North America, Australia, and internationally. It operates through North American OTC Healthcare, International OTC Healthcare, and Household Cleaning segments. The company's OTC healthcare products include Chloraseptic sore throat treatments and mouth pain products, Clear Eyes eye care products, Compound W wart removers, Dramamine Non-Drowsy naturals, Efferdent denture cleansers, Luden's throat drops, BC and Goody's analgesic powders, Beano for gas prevention, Debrox for ear wax removal, and Gaviscon for upset stomach remedies. Its OTC healthcare products portfolio also comprise Fess nasal saline sprays, Hydralyte for dehydration and electrolyte replacement, Monistat for vaginal treatment-anti-fungal, Nix lice/parasite treatments, DenTek for peg oral care, Summer's Eve feminine care products, Fleet laxatives, Pedia Lax pediatric laxatives, Ecotrin aspirin, Phazyme for gas relief, Tagamet acid reducers, and Uristat urinary tract infection treatments. The company also offers household cleaning products consisting of Chore Boy scrubbing Pads; Comet abrasive and non-abrasive powders, sprays, and creams; and Spic and Span brand products. It primarily offers its products to mass merchandisers, drug stores, and supermarkets, as well as club, convenience, and dollar stores. The company was founded in 1996 and is headquartered in Tarrytown, New York.
Escalade Company Profile
Escalade, Incorporated (Escalade) is a manufacturer and distributor of sporting goods through its subsidiary Escalade Sports. The Company operates in Sporting Goods (Escalade Sports) segment. Escalade Sports manufactures, imports and distributes sporting goods brands in basketball goals, archery, indoor and outdoor game recreation and fitness products through sporting goods retailers, specialty dealers, key online retailers, traditional department stores and mass merchants. Escalade offers table tennis tables, residential in-ground basketball goals and in archery bows. Its brands, owned or distributed include Bear Archery, Trophy Ridge, Whisker Biscuit, Cajun Bowfishing, STIGA, Ping-Pong, Prince, Goalrilla, Goaliath, Silverback, Hoopstar, Goalsetter, Woodplay, Childlife, The STEP, USWeight, Atomic, Redline, Mizerak, Minnesota Fats, Accudart, Arachnid, Nodor, Pickleball Now, Onix and Viva Sol. Escalade Sports manufactures in the United States and Mexico, and imports product from Asia.
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