Newell Brands (NASDAQ:NWL) versus Sony (NYSE:SONY) Head-To-Head Comparison

Sony (NYSE:SONY) and Newell Brands (NASDAQ:NWL) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

14.1% of Sony shares are held by institutional investors. Comparatively, 92.5% of Newell Brands shares are held by institutional investors. 7.0% of Sony shares are held by company insiders. Comparatively, 1.6% of Newell Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Sony and Newell Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sony	$82.90 billion	1.67	-$2.16 billion	$1.12	20.92
Newell Brands	$7.20 billion	0.35	-$285.00 million	($0.53)	-11.19

Newell Brands has lower revenue, but higher earnings than Sony. Newell Brands is trading at a lower price-to-earnings ratio than Sony, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Sony has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Dividends

Sony pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. Newell Brands pays an annual dividend of $0.28 per share and has a dividend yield of 4.7%. Sony pays out 9.8% of its earnings in the form of a dividend. Newell Brands pays out -52.8% 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. Newell Brands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Sony and Newell Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sony	-2.00%	13.06%	5.22%
Newell Brands	-3.05%	12.31%	2.77%

Analyst Ratings

This is a summary of current recommendations for Sony and Newell Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sony	1	1	4	1	2.71
Newell Brands	2	4	3	1	2.30

Sony presently has a consensus target price of $22.00, suggesting a potential downside of 6.12%. Newell Brands has a consensus target price of $6.66, suggesting a potential upside of 12.21%. Given Newell Brands’ higher possible upside, analysts plainly believe Newell Brands is more favorable than Sony.

Summary

Sony beats Newell Brands on 11 of the 16 factors compared between the two stocks.

About Sony

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.