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 $12.1B against $2.3B — 5.2× the size. Newell Brands Inc. has negative trailing earnings, so its P/E is not meaningful; The Clorox Company trades at 17.8×. The Clorox Company grew revenue faster over the last twelve months: 6.28% against 0.79%. The Clorox Company has the higher net margin (9.41% vs −4.42%) and the higher return on invested capital (16.7% vs 0.65%). Both pay a dividend; Newell Brands Inc. yields more (5.10% vs 5.01%). Across the 22 metrics below, The Clorox Company leads on 14 and Newell Brands Inc. on 8.

Valuation

Metric CLX NWL Household & Personal Products median
P/E 17.79 n/m 25.45
P/S 1.68 0.32 1.17
P/B 100.01 0.99 2.43
Price to free cash flow 26.71 44.12 20.67
EV/EBITDA 12.10 8.88 13.40
EV/Sales 2.21 1.01 1.24
Earnings yield 5.62% (14.03%) 1.13%
Free cash flow yield 3.74% 2.27% 3.81%

Profitability

Metric CLX NWL Household & Personal Products median
Gross margin 41.94% 35.58% 46.90%
Operating margin 14.58% 0.98% 1.31%
Net margin 9.41% (4.42%) 2.32%
Free cash flow margin 6.30% 0.72% 4.87%
Return on equity 522.78% (12.76%) 4.67%
Return on assets 10.13% (2.91%) 0.00%
Return on invested capital 16.73% 0.65% 0.57%

Growth

Metric CLX NWL Household & Personal Products median
Revenue growth (TTM) 6.28% 0.79% 2.91%
EPS growth (last fiscal year) (26.23%) (30.77%) (5.01%)
Revenue growth, 5-year CAGR (1.75%) (5.15%) 1.39%
Net income growth, 5-year CAGR (3.73%) 0.00% 0.00%

Health

Metric CLX NWL Household & Personal Products median
Debt to equity 32.92 2.05 0.44
Current ratio 0.65 1.27 1.75
Net debt to EBITDA 3.31 6.42 1.37

Dividend

Metric CLX NWL Household & Personal Products median
Dividend yield 5.01% 5.10% 2.48%
Payout ratio 0.89 — 0.74

Size

Metric CLX NWL Household & Personal Products median
Market cap 12.08b 2.34b 671.37m

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