Head to Head Comparison: Spectrum Brands Holdings (SPB) and Orbotech (ORBK)
Spectrum Brands Holdings (NYSE: SPB) and Orbotech (NASDAQ:ORBK) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.
Spectrum Brands Holdings pays an annual dividend of $1.68 per share and has a dividend yield of 1.5%. Orbotech does not pay a dividend. Spectrum Brands Holdings pays out 33.3% of its earnings in the form of a dividend. Orbotech has increased its dividend for 3 consecutive years.
This is a breakdown of recent ratings and price targets for Spectrum Brands Holdings and Orbotech, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spectrum Brands Holdings||0||1||9||0||2.90|
Spectrum Brands Holdings currently has a consensus target price of $137.25, indicating a potential upside of 22.12%. Orbotech has a consensus target price of $50.38, indicating a potential downside of 8.21%. Given Spectrum Brands Holdings’ stronger consensus rating and higher possible upside, equities analysts plainly believe Spectrum Brands Holdings is more favorable than Orbotech.
Risk and Volatility
Spectrum Brands Holdings has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Orbotech has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
Institutional and Insider Ownership
45.3% of Spectrum Brands Holdings shares are owned by institutional investors. Comparatively, 69.4% of Orbotech shares are owned by institutional investors. 1.0% of Spectrum Brands Holdings shares are owned by company insiders. Comparatively, 10.4% of Orbotech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Spectrum Brands Holdings and Orbotech’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spectrum Brands Holdings||5.91%||17.51%||4.43%|
Valuation & Earnings
This table compares Spectrum Brands Holdings and Orbotech’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Spectrum Brands Holdings||$5.01 billion||1.29||$357.10 million||$5.04||22.30|
|Orbotech||$806.40 million||3.26||$79.43 million||$2.10||26.13|
Spectrum Brands Holdings has higher revenue and earnings than Orbotech. Spectrum Brands Holdings is trading at a lower price-to-earnings ratio than Orbotech, indicating that it is currently the more affordable of the two stocks.
Orbotech beats Spectrum Brands Holdings on 9 of the 17 factors compared between the two stocks.
Spectrum Brands Holdings Company Profile
Spectrum Brands Holdings, Inc. (SB Holdings) is a diversified global consumer products company. The Company manufactures, markets and/or distributes its products in approximately 160 countries in the North America (NA); Europe, the Middle East and Africa (EMEA); Latin America (LATAM), and Asia-Pacific (APAC) regions. It has five segments: Global Batteries & Appliances (GBA), Global Pet Supplies (PET), Home and Garden (H&G), Hardware & Home Improvement (HHI) and Global Auto Care (GAC). The Company’s GBA segment includes product categories, such as consumer batteries, small appliances and personal care. The Company’s HHI segment includes product categories, such as lockset, plumbing and hardware. The Company’s PET segment’s product categories include aquatics, companion animal and pet food. The Company’s H&G segment’s product categories include controls, household and repellents. The Company’s GAC segment’s product categories include appearance, performance and A/C recharge.
Orbotech Company Profile
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
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