Analyzing Albertsons Companies (NYSE:ACI) and Energizer (NYSE:ENR)

Albertsons Companies (NYSE:ACI) and Energizer (NYSE:ENR) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Albertsons Companies and Energizer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albertsons Companies	1	4	11	0	2.63
Energizer	0	6	2	0	2.25

Albertsons Companies currently has a consensus target price of $24.0625, suggesting a potential upside of 24.97%. Energizer has a consensus target price of $30.75, suggesting a potential upside of 9.77%. Given Albertsons Companies’ stronger consensus rating and higher probable upside, research analysts clearly believe Albertsons Companies is more favorable than Energizer.

Volatility and Risk

Albertsons Companies has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Energizer has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Dividends

Albertsons Companies pays an annual dividend of $0.60 per share and has a dividend yield of 3.1%. Energizer pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. Albertsons Companies pays out 36.6% of its earnings in the form of a dividend. Energizer pays out 164.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Albertsons Companies has raised its dividend for 1 consecutive years.

Profitability

This table compares Albertsons Companies and Energizer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Albertsons Companies	1.18%	37.92%	4.63%
Energizer	1.87%	184.22%	5.77%

Institutional and Insider Ownership

71.4% of Albertsons Companies shares are held by institutional investors. Comparatively, 93.7% of Energizer shares are held by institutional investors. 1.4% of Albertsons Companies shares are held by company insiders. Comparatively, 1.0% of Energizer shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Albertsons Companies and Energizer”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albertsons Companies	$80.39 billion	0.13	$958.60 million	$1.64	11.74
Energizer	$2.89 billion	0.70	$38.10 million	$0.73	38.37

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

Summary

Albertsons Companies beats Energizer on 9 of the 17 factors compared between the two stocks.

About Albertsons Companies

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw’s, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci’s Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.

About Energizer

Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer, Eveready, and Rayovac brands; primary, rechargeable, specialty, and hearing aid batteries; and handheld, headlights, lanterns, and area lights, as well as flashlights under the Hard Case, Dolphin, and WeatherReady brands. The company licenses the Energizer, Rayovac, and Eveready brands to companies developing consumer solutions in solar, automotive batteries, portable power for critical devices, generators, power tools, household light bulbs, and other lighting products. In addition, it designs and markets automotive fragrance and appearance products, including protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners, and washes to clean, shine, refresh, and protect interior and exterior automobile surfaces under the brand names of Armor All, Nu Finish, Refresh Your Car!, LEXOL, Eagle One, California Scents, Driven, Bahama & Co, Carnu, Grand Prix, Kit, and Tempo; STP branded fuel and oil additives, functional fluids, and other performance chemical products; and do-it-yourself automotive air conditioning recharge products under the A/C PRO brand name, as well as other refrigerant and recharge kits, sealants, and accessories. The company sells its products through direct sales force, distributors, and wholesalers; and various retail and business-to-business channels, including mass merchandisers, club, electronics, food, home improvement, dollar store, auto, drug, hardware, e-commerce, convenience, sporting goods, hobby/craft, office, industrial, medical, and catalog. Energizer Holdings, Inc. was incorporated in 2015 and is headquartered in Saint Louis, Missouri.