Analyzing WD-40 (NASDAQ:WDFC) and Warby Parker (NYSE:WRBY)

WD-40 (NASDAQ:WDFC) and Warby Parker (NYSE:WRBY) are both mid-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Valuation and Earnings

This table compares WD-40 and Warby Parker”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WD-40	$619.98 million	5.03	$90.99 million	$6.57	35.19
Warby Parker	$771.32 million	3.49	-$20.39 million	$0.01	2,544.00

WD-40 has higher earnings, but lower revenue than Warby Parker. WD-40 is trading at a lower price-to-earnings ratio than Warby Parker, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

91.5% of WD-40 shares are held by institutional investors. Comparatively, 93.2% of Warby Parker shares are held by institutional investors. 0.8% of WD-40 shares are held by insiders. Comparatively, 18.2% of Warby Parker shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

WD-40 has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Warby Parker has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for WD-40 and Warby Parker, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WD-40	0	1	1	0	2.50
Warby Parker	0	6	11	0	2.65

WD-40 presently has a consensus target price of $300.00, suggesting a potential upside of 29.74%. Warby Parker has a consensus target price of $27.38, suggesting a potential upside of 7.64%. Given WD-40’s higher probable upside, research analysts clearly believe WD-40 is more favorable than Warby Parker.

Profitability

This table compares WD-40 and Warby Parker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WD-40	14.42%	30.10%	16.79%
Warby Parker	0.08%	1.96%	1.01%

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.