Financial Review: Spectrum Brands (NYSE:SPB) and Samsonite Group (OTCMKTS:SMSEY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spectrum Brands	2.56%	5.27%	2.88%
Samsonite Group	8.46%	20.98%	6.19%

Volatility and Risk

Spectrum Brands has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Samsonite Group has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Earnings & Valuation

This table compares Spectrum Brands and Samsonite Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectrum Brands	$2.96 billion	0.44	$124.80 million	$2.68	20.08
Samsonite Group	$3.59 billion	0.80	$345.70 million	$1.04	10.01

Samsonite Group has higher revenue and earnings than Spectrum Brands. Samsonite Group is trading at a lower price-to-earnings ratio than Spectrum Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Spectrum Brands and Samsonite Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectrum Brands	0	2	4	0	2.67
Samsonite Group	0	1	0	1	3.00

Spectrum Brands currently has a consensus price target of $73.80, suggesting a potential upside of 37.12%. Given Spectrum Brands’ higher probable upside, analysts clearly believe Spectrum Brands is more favorable than Samsonite Group.

Dividends

Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 3.5%. Samsonite Group pays an annual dividend of $0.38 per share and has a dividend yield of 3.7%. Spectrum Brands pays out 70.1% of its earnings in the form of a dividend. Samsonite Group pays out 36.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Spectrum Brands has raised its dividend for 1 consecutive years. Samsonite Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Samsonite Group beats Spectrum Brands on 10 of the 16 factors compared between the two stocks.

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.

About Samsonite Group

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.