Energizer Holdings (NYSE: ENR) and Arotech Corporation (NASDAQ:ARTX) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitabiliy, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares Energizer Holdings and Arotech Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Energizer Holdings $1.72 billion 1.50 $360.30 million $3.01 13.86
Arotech Corporation $89.92 million 1.00 $5.36 million ($0.12) -28.75

Energizer Holdings has higher revenue and earnings than Arotech Corporation. Arotech Corporation is trading at a lower price-to-earnings ratio than Energizer Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Energizer Holdings and Arotech Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energizer Holdings 0 2 3 0 2.60
Arotech Corporation 0 0 2 0 3.00

Energizer Holdings presently has a consensus price target of $55.40, suggesting a potential upside of 32.76%. Arotech Corporation has a consensus price target of $4.75, suggesting a potential upside of 37.68%. Given Arotech Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Arotech Corporation is more favorable than Energizer Holdings.

Dividends

Energizer Holdings pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. Arotech Corporation does not pay a dividend. Energizer Holdings pays out 36.5% of its earnings in the form of a dividend.

Profitability

This table compares Energizer Holdings and Arotech Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energizer Holdings 10.97% 529.84% 10.80%
Arotech Corporation -3.31% 1.59% 0.94%

Volatility and Risk

Energizer Holdings has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Arotech Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

91.7% of Energizer Holdings shares are owned by institutional investors. Comparatively, 21.2% of Arotech Corporation shares are owned by institutional investors. 1.7% of Energizer Holdings shares are owned by company insiders. Comparatively, 9.2% of Arotech Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Energizer Holdings beats Arotech Corporation on 10 of the 16 factors compared between the two stocks.

Energizer Holdings Company Profile

Energizer Holdings, Inc. is a manufacturer, marketer and distributor of household batteries, specialty batteries and lighting products. The Company is a designer and marketer of automotive fragrance and appearance products. It operates through four geographic segments: North America, which consists of the United States and Canada; Latin America, which includes its markets in Mexico, the Caribbean, Central America and South America; Europe, the Middle East and Africa (EMEA), and Asia Pacific, which consists of its markets in Asia, Australia and New Zealand. The Company offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air and silver oxide constructions. These products are sold under the Energizer and Eveready brands in the performance, premium and price segments and include primary, rechargeable, specialty and hearing aid products. It manufactures, distributes and markets lighting products, including headlights, lanterns, kid’s lights and area lights.

Arotech Corporation Company Profile

Arotech Corporation is a defense and security products and services company, engaged in providing interactive simulation for military, law enforcement and commercial markets, and batteries and charging systems for the military, commercial and medical markets. The Company operates through two segments: Training and Simulation Division, and Power Systems Division. The Company’s Training and Simulation Division develops, manufactures and markets multimedia and interactive digital solutions for engineering, use-of-force training and operator training of military, law enforcement, security, emergency services and other personnel. The Company’s Power Systems Division provides battery solutions, energy management and power distribution technologies and product design and manufacturing services for the aerospace, defense, law enforcement, homeland security markets, and it manufactures and sells rechargeable batteries for defense and security products and medical and industrial applications.

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