Head-To-Head Analysis: B&M European Value Retail (OTCMKTS:BMRRY) vs. Spectrum Brands (NYSE:SPB)

B&M European Value Retail (OTCMKTS:BMRRY) and Spectrum Brands (NYSE:SPB) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

B&M European Value Retail has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Spectrum Brands has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Dividends

B&M European Value Retail pays an annual dividend of $0.79 per share and has a dividend yield of 5.3%. Spectrum Brands pays an annual dividend of $1.88 per share and has a dividend yield of 3.3%. Spectrum Brands pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Spectrum Brands has raised its dividend for 1 consecutive years.

Profitability

This table compares B&M European Value Retail and Spectrum Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
B&M European Value Retail	N/A	N/A	N/A
Spectrum Brands	2.02%	5.20%	2.87%

Earnings & Valuation

This table compares B&M European Value Retail and Spectrum Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
B&M European Value Retail	$7.11 billion	0.52	$407.01 million	N/A	N/A
Spectrum Brands	$2.96 billion	0.47	$124.80 million	$2.09	26.98

B&M European Value Retail has higher revenue and earnings than Spectrum Brands.

Analyst Recommendations

This is a summary of recent recommendations for B&M European Value Retail and Spectrum Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
B&M European Value Retail	0	1	1	2	3.25
Spectrum Brands	0	2	4	0	2.67

Spectrum Brands has a consensus price target of $85.00, indicating a potential upside of 50.76%. Given Spectrum Brands’ higher probable upside, analysts plainly believe Spectrum Brands is more favorable than B&M European Value Retail.

Insider and Institutional Ownership

0.0% of B&M European Value Retail shares are held by institutional investors. 3.6% of Spectrum Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

B&M European Value Retail beats Spectrum Brands on 9 of the 16 factors compared between the two stocks.

About B&M European Value Retail

B&M European Value Retail S.A. operates general merchandise and grocery stores. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express in the United Kingdom; and stores under the B&M brand in France. It also provides property management services. The company was founded in 1978 and is based in Munsbach, Luxembourg.

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.