Financial Survey: Hengan International Group (OTCMKTS:HEGIY) versus Spectrum Brands (NYSE:SPB)

Hengan International Group (OTCMKTS:HEGIY) and Spectrum Brands (NYSE:SPB) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Hengan International Group and Spectrum Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hengan International Group	N/A	N/A	N/A
Spectrum Brands	2.56%	5.27%	2.88%

Analyst Ratings

This is a breakdown of current recommendations for Hengan International Group and Spectrum Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hengan International Group	0	0	0	0	0.00
Spectrum Brands	0	2	4	0	2.67

Spectrum Brands has a consensus target price of $73.80, indicating a potential upside of 31.05%. Given Spectrum Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Spectrum Brands is more favorable than Hengan International Group.

Valuation and Earnings

This table compares Hengan International Group and Spectrum Brands”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hengan International Group	$3.15 billion	1.31	$319.73 million	N/A	N/A
Spectrum Brands	$2.96 billion	0.46	$124.80 million	$2.68	21.01

Hengan International Group has higher revenue and earnings than Spectrum Brands.

Dividends

Hengan International Group pays an annual dividend of $0.84 per share and has a dividend yield of 4.7%. Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 3.3%. Spectrum Brands pays out 70.1% of its earnings in the form of a dividend. Spectrum Brands has raised its dividend for 1 consecutive years.

Institutional and Insider Ownership

0.0% of Hengan International Group shares are owned by institutional investors. 3.9% of Spectrum Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Hengan International Group has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

Spectrum Brands beats Hengan International Group on 9 of the 15 factors compared between the two stocks.

About Hengan International Group

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People's Republic of China and internationally. The company offers pocket handkerchiefs, box and soft tissue papers, kitchen towels/papers, toilet rolls, first-aid products, enema, garbage and food bags, preservation papers, table cloths and disposable toilet brush, sanitary napkins, pantiliners, overnight pants, wet tissues, maternal and child care products, adult and baby diapers, and cleansing products. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids, as well as disposable fiber-based products; and engages in the ecommerce business. In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instrument, skin care products, antiseptics, and household products. Hengan International Group Company Limited was founded in 1985 and is headquartered in Jinjiang, the People's Republic of China.

About Spectrum Brands

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company in North America, Europe, the Middle East, Africa, and Asia-Pacific regions. It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden. The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, PowerXL, Emeril Legasse, Copper Chef, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington brand. The Global Pet Care segment provides dog and cat chews, treats, wet and dry foods, dog and cat clean-up and food, training, health and grooming, indoor birds, and small animal food and care products under the Good'n'Fun, DreamBone, GOOD BOY, SmartBones, IAMS, EUKANUBA, Nature's Miracle, FURminator, Dingo, 8IN1, Meowee!, and Wild Harvest brands. This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Instant Ocean, GloFish, and OmegaSea brands. The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands. The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors. Spectrum Brands Holdings, Inc. was founded in 1906 and is headquartered in Middleton, Wisconsin.