Reviewing Henkel AG & Co. (OTCMKTS:HENKY) & ARKO (NASDAQ:ARKO)

ARKO (NASDAQ:ARKO) and Henkel AG & Co. (OTCMKTS:HENKY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for ARKO and Henkel AG & Co., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARKO	1	2	1	2	2.67
Henkel AG & Co.	0	2	1	2	3.00

ARKO presently has a consensus target price of $7.13, indicating a potential upside of 58.69%. Given ARKO’s higher possible upside, equities analysts clearly believe ARKO is more favorable than Henkel AG & Co..

Profitability

This table compares ARKO and Henkel AG & Co.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARKO	0.18%	5.50%	0.41%
Henkel AG & Co.	N/A	N/A	N/A

Dividends

ARKO pays an annual dividend of $0.12 per share and has a dividend yield of 2.7%. Henkel AG & Co. pays an annual dividend of $0.39 per share and has a dividend yield of 2.1%. ARKO pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

ARKO has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Henkel AG & Co. has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares ARKO and Henkel AG & Co.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARKO	$8.73 billion	0.06	$20.84 million	$0.08	56.13
Henkel AG & Co.	$23.36 billion	1.34	$2.17 billion	N/A	N/A

Henkel AG & Co. has higher revenue and earnings than ARKO.

Institutional and Insider Ownership

78.3% of ARKO shares are held by institutional investors. Comparatively, 0.0% of Henkel AG & Co. shares are held by institutional investors. 22.5% of ARKO shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

ARKO beats Henkel AG & Co. on 8 of the 13 factors compared between the two stocks.

About ARKO

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.

About Henkel AG & Co.

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and beauty care, and laundry and home care businesses worldwide. It operates in two segments, Adhesive Technologies and Consumer Brands segments. The company offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. It also provides hair styling, hair coloring, and hair care products; and body products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, the company offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and toilet applications; household, glass, and specialty cleaners; and insect control products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.