The Clorox Company (CLX) vs Newell Brands Inc. (NWL)

The Clorox Company and Newell Brands Inc. are both Household & Personal Products companies. The Clorox Company is the larger, with a market value of $10.0B against $2.4B — 4.2× the size. Newell Brands Inc. has negative trailing earnings, so its P/E is not meaningful; The Clorox Company trades at 17.4×. Newell Brands Inc. grew revenue faster over the last twelve months: −2.04% against −5.41%. The Clorox Company has the higher net margin (8.74% vs −3.05%) and the higher return on invested capital (14.0% vs 1.41%). Both pay a dividend; Newell Brands Inc. yields more (5.61% vs 3.13%). Across the 22 metrics below, The Clorox Company leads on 11 and Newell Brands Inc. on 11.

Valuation

Metric CLX NWL Household & Personal Products median
P/E 17.39 n/m 22.55
P/S 1.52 0.32 1.13
P/B 40.50 0.94 3.02
Price to free cash flow 25.20 19.57 17.73
EV/EBITDA 12.11 8.62 12.27
EV/Sales 2.09 0.98 1.26
Earnings yield 5.75% (9.76%) 0.27%
Free cash flow yield 3.97% 5.11% 4.03%

Profitability

Metric CLX NWL Household & Personal Products median
Gross margin 42.32% 35.45% 46.28%
Operating margin 13.59% 2.26% 0.79%
Net margin 8.74% (3.05%) 0.61%
Free cash flow margin 6.03% 1.63% 2.89%
Return on equity 159.95% (8.59%) 2.12%
Return on assets 8.79% (1.96%) 0.00%
Return on invested capital 13.95% 1.41% 0.00%

Growth

Metric CLX NWL Household & Personal Products median
Revenue growth (TTM) (5.41%) (2.04%) 2.93%
EPS growth (last fiscal year) (26.23%) (30.77%) —
Revenue growth, 5-year CAGR (1.75%) (5.15%) 2.03%
Net income growth, 5-year CAGR (3.73%) 0.00% 0.00%

Health

Metric CLX NWL Household & Personal Products median
Debt to equity 15.80 2.04 0.46
Current ratio 0.66 1.11 1.64
Net debt to EBITDA 3.31 6.42 1.37

Dividend

Metric CLX NWL Household & Personal Products median
Dividend yield 3.13% 5.61% 1.96%
Payout ratio 3.93 0.68 0.49

Size

Metric CLX NWL Household & Personal Products median
Market cap 9.95b 2.38b 625.04m

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