Newell Brands (NASDAQ:NWL) and Ollie’s Bargain Outlet (NASDAQ:OLLI) Critical Comparison

Newell Brands (NASDAQ:NWL) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both mid-cap consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Valuation & Earnings

This table compares Newell Brands and Ollie’s Bargain Outlet”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newell Brands	$7.58 billion	0.31	-$216.00 million	($0.59)	-9.44
Ollie’s Bargain Outlet	$2.27 billion	3.64	$199.76 million	$3.25	41.50

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

Profitability

This table compares Newell Brands and Ollie’s Bargain Outlet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newell Brands	-3.29%	8.48%	2.05%
Ollie’s Bargain Outlet	8.59%	12.27%	8.05%

Insider and Institutional Ownership

92.5% of Newell Brands shares are held by institutional investors. 0.7% of Newell Brands shares are held by insiders. Comparatively, 0.8% of Ollie’s Bargain Outlet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Newell Brands has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Newell Brands and Ollie’s Bargain Outlet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newell Brands	0	4	4	0	2.50
Ollie’s Bargain Outlet	0	5	9	0	2.64

Newell Brands currently has a consensus price target of $7.4375, indicating a potential upside of 33.53%. Ollie’s Bargain Outlet has a consensus price target of $130.7857, indicating a potential downside of 3.04%. Given Newell Brands’ higher probable upside, equities research analysts plainly believe Newell Brands is more favorable than Ollie’s Bargain Outlet.

Summary

Ollie’s Bargain Outlet beats Newell Brands on 10 of the 14 factors compared between the two stocks.

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.

About Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.