Lion (OTCMKTS:LIOPF) and Newell Brands (NASDAQ:NWL) Financial Comparison

Lion (OTCMKTS:LIOPF) and Newell Brands (NASDAQ:NWL) are both mid-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Lion and Newell Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion	0	1	0	0	2.00
Newell Brands	2	4	3	0	2.11

Newell Brands has a consensus target price of $4.88, indicating a potential downside of 11.12%. Given Newell Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Newell Brands is more favorable than Lion.

Valuation and Earnings

This table compares Lion and Newell Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion	$2.82 billion	1.14	$184.84 million	$0.67	17.18
Newell Brands	$7.19 billion	0.32	-$285.00 million	($0.67)	-8.19

Lion has higher earnings, but lower revenue than Newell Brands. Newell Brands is trading at a lower price-to-earnings ratio than Lion, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Lion has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Lion and Newell Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion	6.52%	8.29%	5.58%
Newell Brands	-3.91%	8.89%	2.03%

Institutional and Insider Ownership

92.5% of Newell Brands shares are owned by institutional investors. 1.6% of Newell Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Newell Brands beats Lion on 8 of the 14 factors compared between the two stocks.

About Lion

Lion Corporation manufactures and sells consumer and industrial products in Japan and internationally. It operates through three segments: Consumer Products Business, Industrial Products Business, and Overseas Business. The company provides dental and oral care products, including toothpastes, toothbrushes, dental floss, dental rinses, mouthwashes, periodontitis ointments, and denture products; body care products, such as shampoos and conditioners, hand soaps, sanitizers, wet wipes, body washes, skin and acne care products, antiperspirants and deodorants, hair-nourishment treatments, men's care and toiletries products, and foot care products. It offers antipyretic analgesics, eye drops and eye care products, cold medicines, gargles, cold relief products, topical anti-inflammatory analgesics, antidiarrheal and gastrointestinal medicines, health tonic drinks and vitamin supplements, acne and anti-drowsiness medicines, and dermatologic agents. In addition, the company offers fabric care products, such as laundry detergent, delicate detergent, prewash treatment, stain remover, bleach, and fabric softener; clothing care products; household cleaners; kitchen cleanup products comprises dishwashing detergents and antibacterial and deodorizing products; and food preparation products. Further, it provides health and beauty food products consisting of supplements and health tonic drinks; specialty chemicals, and chemical products, include rubber processing and additive agents, mandrel release agents, fatty acid methyl esters, plant-based electrical insulating oils, concrete admixtures, surfactants, and cosmetics ingredients, as well as electro-conductive carbon black and pressure-sensitive adhesives; pet supplies; and gift and special-order products. The company was founded in 1891 and is headquartered in Tokyo, Japan.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.