Critical Analysis: Revlon (REV) and Matthews International Corporation (MATW)
Revlon (NYSE: REV) and Matthews International Corporation (NASDAQ:MATW) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.
Risk & Volatility
Revlon has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Matthews International Corporation has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Insider & Institutional Ownership
14.0% of Revlon shares are held by institutional investors. Comparatively, 78.9% of Matthews International Corporation shares are held by institutional investors. 78.0% of Revlon shares are held by company insiders. Comparatively, 3.9% of Matthews International Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Revlon and Matthews International Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Revlon||$2.65 billion||0.34||$293.10 million||($2.20)||-7.68|
|Matthews International Corporation||$1.50 billion||1.29||$190.96 million||$2.39||25.21|
Revlon has higher revenue and earnings than Matthews International Corporation. Revlon is trading at a lower price-to-earnings ratio than Matthews International Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Revlon and Matthews International Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Matthews International Corporation||0||0||3||0||3.00|
Matthews International Corporation has a consensus target price of $83.50, indicating a potential upside of 38.59%. Given Matthews International Corporation’s higher possible upside, analysts clearly believe Matthews International Corporation is more favorable than Revlon.
This table compares Revlon and Matthews International Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Matthews International Corporation||5.17%||16.23%||5.40%|
Matthews International Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Revlon does not pay a dividend. Matthews International Corporation pays out 28.5% of its earnings in the form of a dividend. Revlon has raised its dividend for 5 consecutive years.
Matthews International Corporation beats Revlon on 10 of the 16 factors compared between the two stocks.
Revlon Company Profile
Revlon, Inc. manufactures, markets and sells around the world a range of beauty and personal care products, including color cosmetics, hair color, hair care and hair treatments, as well as beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. The Company operates through four segments: Consumer, which includes cosmetics, hair color and hair care, beauty tools, anti-perspirant deodorants, fragrances and skincare products; Professional, which includes a line of products sold to hair and nail salons, and professional salon distributors, including hair color, shampoos, conditioners, styling products, nail polishes and nail enhancements; Elizabeth Arden, which include Elizabeth Arden, which produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand and Other, which includes the distribution of prestige, designer and celebrity fragrances, cosmetics and skincare products.
Matthews International Corporation Company Profile
Matthews International Corporation is a provider of brand solutions, memorialization products and industrial technologies. The Company operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment and delivery (consisting of brand management, printing plates and cylinders, pre-media services and imaging services for consumer packaged goods and retail customers, merchandising display systems, and marketing and design services). The Memorialization segment manufactures and markets a line of memorialization products used primarily in cemeteries, funeral homes and crematories. The Industrial Technologies segment designs, manufactures and distributes a range of marking, coding and industrial automation solutions, order fulfillment systems and related consumables.
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