Critical Comparison: Kenvue (NYSE:KVUE) vs. Energizer (NYSE:ENR)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Kenvue and Energizer, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	1	11	5	1	2.33
Energizer	0	8	1	0	2.11

Kenvue presently has a consensus target price of $20.17, indicating a potential upside of 24.61%. Energizer has a consensus target price of $31.00, indicating a potential upside of 33.22%. Given Energizer’s higher probable upside, analysts clearly believe Energizer is more favorable than Kenvue.

Dividends

Kenvue pays an annual dividend of $0.83 per share and has a dividend yield of 5.1%. Energizer pays an annual dividend of $1.20 per share and has a dividend yield of 5.2%. Kenvue pays out 112.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Energizer pays out 34.6% of its earnings in the form of a dividend. Kenvue has raised its dividend for 1 consecutive years. Energizer is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Kenvue and Energizer”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	2.01	$1.03 billion	$0.74	21.87
Energizer	$2.89 billion	0.55	$38.10 million	$3.47	6.71

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

Institutional & Insider Ownership

97.6% of Kenvue shares are held by institutional investors. Comparatively, 93.7% of Energizer shares are held by institutional investors. 0.2% of Kenvue shares are held by company insiders. Comparatively, 1.0% of Energizer shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.37%	20.06%	7.78%
Energizer	8.60%	181.90%	6.24%

Volatility and Risk

Kenvue has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Energizer has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Summary

Kenvue beats Energizer on 12 of the 18 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

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.