HRG Group (NYSE: HRG) and NACCO Industries (NYSE:NC) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares HRG Group and NACCO Industries’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|HRG Group||$5.00 billion||0.61||$857.70 million||$0.62||24.53|
|NACCO Industries||$854.67 million||0.46||$27.70 million||$5.18||14.54|
HRG Group has higher revenue and earnings than NACCO Industries. NACCO Industries is trading at a lower price-to-earnings ratio than HRG Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.4% of HRG Group shares are owned by institutional investors. Comparatively, 49.2% of NACCO Industries shares are owned by institutional investors. 1.2% of HRG Group shares are owned by insiders. Comparatively, 30.6% of NACCO Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares HRG Group and NACCO Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
NACCO Industries pays an annual dividend of $1.09 per share and has a dividend yield of 1.4%. HRG Group does not pay a dividend. NACCO Industries pays out 21.0% of its earnings in the form of a dividend. NACCO Industries has raised its dividend for 3 consecutive years.
Volatility and Risk
HRG Group has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, NACCO Industries has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for HRG Group and NACCO Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
About HRG Group
HRG Group, Inc. is a holding company. The Company operates through two segments: Consumer Products and Insurance. The Consumer Products segment consists of the Company’s subsidiary, Spectrum Brands Holdings, Inc. (Spectrum Brands). The Insurance segment includes its subsidiary, Front Street Re (Delaware) Ltd. (Front Street). Through Spectrum Brands, the Company is a diversified global branded consumer products company. The Company offers seven product categories: consumer batteries, small appliances, global pet supplies, home and garden control products, personal care products, hardware and home improvement products and global auto care. Through Front Street, the Company is engaged in the business of providing long-term reinsurance, including reinsurance to the specialty insurance sector of fixed, deferred and payout annuities. The Company’s subsidiary, Fidelity & Guaranty Life (FGL), provides life insurance and annuity products.
About NACCO Industries
NACCO Industries, Inc. is a holding company. The Company’s principal businesses include mining, small appliances and specialty retail. The Company operates through three segments: NACoal, HBB and KC. The Company’s subsidiaries include The North American Coal Corporation (NACoal), Hamilton Beach Brands, Inc. (HBB) and Kitchen Collection, LLC (KC). The Company’s NACoal segment mines coal for use in power generation and provides mining services for other natural resources companies. Coal is surface mined from NACoal’s mines in North Dakota, Texas, Mississippi, Louisiana and the Navajo Nation in New Mexico. The Company’s HBB segment designs, markets and distributes a range of small electric household and specialty housewares appliances, including, blenders, can openers, coffeemakers, food processors, indoor electric grills, irons, mixers, slow cookers, toasters and toaster ovens. In addition, HBB designs, markets and distributes commercial products for restaurants, bars and hotels.
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