Olaplex (NASDAQ:OLPX) & Reynolds Consumer Products (NASDAQ:REYN) Critical Review

Olaplex (NASDAQ:OLPX) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Volatility and Risk

Olaplex has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Olaplex and Reynolds Consumer Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olaplex	1	3	2	1	2.43
Reynolds Consumer Products	0	8	2	0	2.20

Olaplex currently has a consensus price target of $1.81, suggesting a potential upside of 7.25%. Reynolds Consumer Products has a consensus price target of $26.75, suggesting a potential upside of 12.77%. Given Reynolds Consumer Products’ higher probable upside, analysts clearly believe Reynolds Consumer Products is more favorable than Olaplex.

Profitability

This table compares Olaplex and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olaplex	-1.18%	1.31%	0.70%
Reynolds Consumer Products	8.20%	15.88%	7.01%

Institutional and Insider Ownership

87.4% of Olaplex shares are owned by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are owned by institutional investors. 4.3% of Olaplex shares are owned by insiders. Comparatively, 0.2% of Reynolds Consumer Products shares are owned 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.

Earnings & Valuation

This table compares Olaplex and Reynolds Consumer Products”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olaplex	$422.67 million	2.67	$19.52 million	N/A	N/A
Reynolds Consumer Products	$3.70 billion	1.35	$352.00 million	$1.46	16.25

Reynolds Consumer Products has higher revenue and earnings than Olaplex.

Summary

Olaplex beats Reynolds Consumer Products on 7 of the 13 factors compared between the two stocks.

About Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.