Critical Analysis: Knoll (KNL) & Acco Brands Corporation (ACCO)
Knoll (NYSE: KNL) and Acco Brands Corporation (NYSE:ACCO) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitabiliy.
Insider and Institutional Ownership
98.0% of Knoll shares are owned by institutional investors. Comparatively, 91.4% of Acco Brands Corporation shares are owned by institutional investors. 1.9% of Knoll shares are owned by insiders. Comparatively, 4.5% of Acco Brands Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Knoll has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Acco Brands Corporation has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.
Knoll pays an annual dividend of $0.60 per share and has a dividend yield of 3.2%. Acco Brands Corporation does not pay a dividend. Knoll pays out 41.4% of its earnings in the form of a dividend. Knoll has increased its dividend for 2 consecutive years.
This is a breakdown of current recommendations for Knoll and Acco Brands Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Acco Brands Corporation||0||0||1||0||3.00|
Knoll currently has a consensus price target of $27.00, suggesting a potential upside of 45.63%. Acco Brands Corporation has a consensus price target of $18.00, suggesting a potential upside of 65.14%. Given Acco Brands Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Acco Brands Corporation is more favorable than Knoll.
Valuation & Earnings
This table compares Knoll and Acco Brands Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Knoll||$1.11 billion||0.82||$141.65 million||$1.45||12.79|
|Acco Brands Corporation||$1.72 billion||0.69||$257.00 million||$0.51||21.37|
Acco Brands Corporation has higher revenue and earnings than Knoll. Knoll is trading at a lower price-to-earnings ratio than Acco Brands Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Knoll and Acco Brands Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Acco Brands Corporation||3.25%||15.03%||4.39%|
Knoll beats Acco Brands Corporation on 9 of the 16 factors compared between the two stocks.
Knoll Company Profile
Knoll, Inc. is a manufacturer of commercial and residential furniture, accessories and coverings. The Company operates through three segments: Office, Studio and Coverings. The Office segment includes a range of workplace products that address workplace planning paradigms. These products include systems furniture, seating, storage, tables, desks and KnollExtra accessories, as well as the international sales of its North American Office products. The Studio segment includes KnollStudio products, DatesWeiser, HOLLY HUNT and Knoll Europe. The Coverings segment includes KnollTextiles, Spinneybeck (including Filzfelt), and Edelman Leather. These businesses provide a range of customers with fabrics, felt, leather and related architectural products. KnollStudio products include iconic seating, lounge furniture, side, cafe and dining chairs, as well as conference, training, dining and occasional tables.
Acco Brands Corporation Company Profile
ACCO Brands Corporation is engaged in designing, marketing and manufacturing of branded business, academic and selected consumer products. The Company operates through three segments: ACCO Brands North America, ACCO Brands International and Computer Products Group. The Company’s brands include Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra and Wilson Jones. The Company’s ACCO Brands North America and ACCO Brands International design, market, source, manufacture and sell traditional office products, academic supplies and calendar products. ACCO Brands North America consists of the United States and Canada, and ACCO Brands International consists of the rest of the world, primarily Northern Europe, Australia, Brazil and Mexico. Its Computer Products Group designs, sources, distributes, markets and sells accessories for laptop and desktop computers and tablets.
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