Comparing Reynolds Consumer Products (NASDAQ:REYN) and Church & Dwight (NYSE:CHD)

Church & Dwight (NYSE:CHD) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.

Valuation and Earnings

This table compares Church & Dwight and Reynolds Consumer Products”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Church & Dwight	$6.23 billion	3.86	$736.80 million	$3.11	32.65
Reynolds Consumer Products	$3.72 billion	1.47	$301.00 million	$1.64	15.81

Church & Dwight has higher revenue and earnings than Reynolds Consumer Products. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Church & Dwight, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Church & Dwight and Reynolds Consumer Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Church & Dwight	1	8	9	0	2.44
Reynolds Consumer Products	0	7	1	0	2.12

Church & Dwight currently has a consensus price target of $104.41, indicating a potential upside of 2.82%. Reynolds Consumer Products has a consensus price target of $25.60, indicating a potential downside of 1.30%. Given Church & Dwight’s stronger consensus rating and higher possible upside, analysts clearly believe Church & Dwight is more favorable than Reynolds Consumer Products.

Dividends

Church & Dwight pays an annual dividend of $1.23 per share and has a dividend yield of 1.2%. Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 3.5%. Church & Dwight pays out 39.5% of its earnings in the form of a dividend. Reynolds Consumer Products pays out 56.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Church & Dwight has increased its dividend for 29 consecutive years.

Profitability

This table compares Church & Dwight and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Church & Dwight	11.96%	20.10%	9.31%
Reynolds Consumer Products	9.11%	16.03%	7.28%

Insider & Institutional Ownership

86.6% of Church & Dwight shares are owned by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are owned by institutional investors. 2.0% of Church & Dwight shares are owned by company insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Church & Dwight has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Summary

Church & Dwight beats Reynolds Consumer Products on 15 of the 17 factors compared between the two stocks.

About Church & Dwight

Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products Division (SPD), and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment is involved in the personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom. The SPD segment consists of sales to businesses and participates in three product areas namely, animal nutrition, specialty chemicals, and commercial and professional. The Corporate segment includes equity in earnings of affiliates. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.