Critical Review: Church & Dwight (CHD) & The Competition

Church & Dwight (NYSE: CHD) is one of 26 public companies in the “SOAPS/COSMETICS” industry, but how does it contrast to its rivals? We will compare Church & Dwight to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Valuation and Earnings

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This table compares Church & Dwight and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Church & Dwight $3.78 billion $743.40 million 17.01
Church & Dwight Competitors $15.45 billion $2.24 billion 25.79

Church & Dwight’s rivals have higher revenue and earnings than Church & Dwight. Church & Dwight is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Church & Dwight and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Church & Dwight 4 7 5 0 2.06
Church & Dwight Competitors 307 1145 1130 29 2.34

Church & Dwight presently has a consensus price target of $51.77, indicating a potential upside of 4.21%. As a group, “SOAPS/COSMETICS” companies have a potential downside of 1.86%. Given Church & Dwight’s higher possible upside, research analysts clearly believe Church & Dwight is more favorable than its rivals.

Institutional & Insider Ownership

83.6% of Church & Dwight shares are held by institutional investors. Comparatively, 56.0% of shares of all “SOAPS/COSMETICS” companies are held by institutional investors. 2.0% of Church & Dwight shares are held by company insiders. Comparatively, 16.8% of shares of all “SOAPS/COSMETICS” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Church & Dwight and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Church & Dwight 19.69% 24.95% 9.40%
Church & Dwight Competitors 0.18% 21.74% -3.77%

Dividends

Church & Dwight pays an annual dividend of $0.87 per share and has a dividend yield of 1.8%. Church & Dwight pays out 29.8% of its earnings in the form of a dividend. As a group, “SOAPS/COSMETICS” companies pay a dividend yield of 2.1% and pay out 55.6% of their earnings in the form of a dividend. Church & Dwight has increased its dividend for 12 consecutive years.

Risk & Volatility

Church & Dwight has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, Church & Dwight’s rivals have a beta of 0.35, indicating that their average stock price is 65% less volatile than the S&P 500.

Summary

Church & Dwight rivals beat Church & Dwight on 8 of the 15 factors compared.

Church & Dwight Company Profile

Church & Dwight Co., Inc. develops, manufactures and markets a range of household, personal care and specialty products. The Company’s segments include Consumer Domestic, Consumer International and Specialty Products Division (SPD). The Company also sells specialty products to industrial customers and distributors. The Consumer Domestic segment includes various brands, as well as other household and personal care products, such as KABOOM cleaning products, ARRID antiperspirant, CLOSE-UP and AIM toothpastes and SIMPLY SALINE nasal saline moisturizer. The Consumer International segment markets a range of personal care products, household and over-the-counter products in international markets, including Canada, France, China, Australia, the United Kingdom, Mexico and Brazil. The Company’s SPD segment is a producer of sodium bicarbonate, which it sells together with other specialty inorganic chemicals for various industrial, institutional, medical and food applications.

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