Head-To-Head Analysis: Procter & Gamble (NYSE:PG) and Energizer (NYSE:ENR)

Procter & Gamble (NYSE:PG) and Energizer (NYSE:ENR) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Risk & Volatility

Procter & Gamble has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Energizer has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Dividends

Procter & Gamble pays an annual dividend of $4.22 per share and has a dividend yield of 2.9%. Energizer pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. Procter & Gamble pays out 61.6% of its earnings in the form of a dividend. Energizer pays out 36.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Procter & Gamble has increased its dividend for 70 consecutive years. Energizer is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Procter & Gamble and Energizer”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.93 billion	3.96	$15.97 billion	$6.85	21.03
Energizer	$2.95 billion	0.46	$239.00 million	$3.32	6.03

Procter & Gamble has higher revenue and earnings than Energizer. Energizer is trading at a lower price-to-earnings ratio than Procter & Gamble, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Procter & Gamble and Energizer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	19.74%	32.63%	13.53%
Energizer	8.09%	161.50%	5.79%

Analyst Ratings

This is a breakdown of current ratings and price targets for Procter & Gamble and Energizer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	10	13	0	2.57
Energizer	1	7	1	0	2.00

Procter & Gamble presently has a consensus price target of $171.38, suggesting a potential upside of 18.96%. Energizer has a consensus price target of $27.00, suggesting a potential upside of 34.84%. Given Energizer’s higher possible upside, analysts clearly believe Energizer is more favorable than Procter & Gamble.

Institutional & Insider Ownership

65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 93.7% of Energizer shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by insiders. Comparatively, 1.6% of Energizer shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Procter & Gamble beats Energizer on 10 of the 17 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

About Energizer

Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer, Eveready, and Rayovac brands; primary, rechargeable, specialty, and hearing aid batteries; and handheld, headlights, lanterns, and area lights, as well as flashlights under the Hard Case, Dolphin, and WeatherReady brands. The company licenses the Energizer, Rayovac, and Eveready brands to companies developing consumer solutions in solar, automotive batteries, portable power for critical devices, generators, power tools, household light bulbs, and other lighting products. In addition, it designs and markets automotive fragrance and appearance products, including protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners, and washes to clean, shine, refresh, and protect interior and exterior automobile surfaces under the brand names of Armor All, Nu Finish, Refresh Your Car!, LEXOL, Eagle One, California Scents, Driven, Bahama & Co, Carnu, Grand Prix, Kit, and Tempo; STP branded fuel and oil additives, functional fluids, and other performance chemical products; and do-it-yourself automotive air conditioning recharge products under the A/C PRO brand name, as well as other refrigerant and recharge kits, sealants, and accessories. The company sells its products through direct sales force, distributors, and wholesalers; and various retail and business-to-business channels, including mass merchandisers, club, electronics, food, home improvement, dollar store, auto, drug, hardware, e-commerce, convenience, sporting goods, hobby/craft, office, industrial, medical, and catalog. Energizer Holdings, Inc. was incorporated in 2015 and is headquartered in Saint Louis, Missouri.