Critical Review: Henkel AG & Co. (OTCMKTS:HENKY) and Oil-Dri Corporation Of America (NYSE:ODC)

Oil-Dri Corporation Of America (NYSE:ODC) and Henkel AG & Co. (OTCMKTS:HENKY) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Insider & Institutional Ownership

49.0% of Oil-Dri Corporation Of America shares are owned by institutional investors. Comparatively, 0.0% of Henkel AG & Co. shares are owned by institutional investors. 11.7% of Oil-Dri Corporation Of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Oil-Dri Corporation Of America and Henkel AG & Co.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oil-Dri Corporation Of America	$485.57 million	2.89	$54.00 million	$3.89	24.94
Henkel AG & Co.	$23.18 billion	1.50	$2.30 billion	N/A	N/A

Henkel AG & Co. has higher revenue and earnings than Oil-Dri Corporation Of America.

Volatility & Risk

Oil-Dri Corporation Of America has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Henkel AG & Co. has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares Oil-Dri Corporation Of America and Henkel AG & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oil-Dri Corporation Of America	11.35%	20.53%	14.17%
Henkel AG & Co.	N/A	N/A	N/A

Dividends

Oil-Dri Corporation Of America pays an annual dividend of $0.82 per share and has a dividend yield of 0.8%. Henkel AG & Co. pays an annual dividend of $0.41 per share and has a dividend yield of 1.9%. Oil-Dri Corporation Of America pays out 21.1% of its earnings in the form of a dividend. Oil-Dri Corporation Of America has increased its dividend for 11 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Oil-Dri Corporation Of America and Henkel AG & Co., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oil-Dri Corporation Of America	0	0	1	0	3.00
Henkel AG & Co.	1	2	0	1	2.25

Summary

Oil-Dri Corporation Of America beats Henkel AG & Co. on 10 of the 15 factors compared between the two stocks.

About Oil-Dri Corporation Of America

Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.