Analyzing PT Unilever Indonesia Tbk (OTCMKTS:UNLRY) and WD-40 (NASDAQ:WDFC)

WD-40 (NASDAQ:WDFC) and PT Unilever Indonesia Tbk (OTCMKTS:UNLRY) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

91.5% of WD-40 shares are held by institutional investors. 0.8% of WD-40 shares are held by 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.

Dividends

WD-40 pays an annual dividend of $4.08 per share and has a dividend yield of 1.7%. PT Unilever Indonesia Tbk pays an annual dividend of $10,182.91 per share and has a dividend yield of 530,360.1%. WD-40 pays out 62.0% of its earnings in the form of a dividend. PT Unilever Indonesia Tbk pays out 73.1% 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. WD-40 has raised its dividend for 17 consecutive years.

Profitability

This table compares WD-40 and PT Unilever Indonesia Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	13.23%	33.53%	18.97%
PT Unilever Indonesia Tbk	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for WD-40 and PT Unilever Indonesia Tbk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WD-40	0	2	2	2	3.00
PT Unilever Indonesia Tbk	0	0	0	0	0.00

WD-40 presently has a consensus price target of $305.00, indicating a potential upside of 29.90%. Given WD-40’s stronger consensus rating and higher probable upside, analysts clearly believe WD-40 is more favorable than PT Unilever Indonesia Tbk.

Valuation & Earnings

This table compares WD-40 and PT Unilever Indonesia Tbk”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$619.98 million	5.08	$90.99 million	$6.58	35.68
PT Unilever Indonesia Tbk	N/A	N/A	N/A	$13,921.51	0.00

WD-40 has higher revenue and earnings than PT Unilever Indonesia Tbk. PT Unilever Indonesia Tbk is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Summary

WD-40 beats PT Unilever Indonesia Tbk on 13 of the 15 factors compared between the two stocks.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.

About PT Unilever Indonesia Tbk

PT Unilever Indonesia Tbk manufactures, markets, and distributes consumer goods in Indonesia. It offers soaps, detergents, dairy based foods, ice creams, savories, soy sauce, cosmetic products, tea-based beverages, and fruit juices. The company provides its products under the Axe, Bango, Buavita, Cif, Citra, Clear, Clear Men, Close Up, Cornetto, Dove, Feast, Feast, Glow & Lovely, Hellmann's, Jawara, Knorr, Lifebuoy, Lipton, Love Beauty & Planet, Lux, Magnum, Molto, Paddle Pop, Pepsodent, Pond's, Pond's Men, Populaire, Rexona, Rinso, Royco, SariWangi, Seru, Simple, St. Ives, Suave, Sunlight, Sunsilk, Superpell, TRESemmé, The Vegetarian Butcher, Unilever Professional, Vaseline Men, Viennetta, Vixal, Wall's, Wipol, Zwitsalm, and other brands. It also leases office space. PT Unilever Indonesia Tbk was founded in 1933 and is headquartered in Tangerang, Indonesia. PT Unilever Indonesia Tbk operates as a subsidiary of Unilever PLC.