KWS SAAT SE & Co. KGaA (ETR:KWS) and HORNBACH Holding AG & Co. KGaA (ETR:HBH) are both consumer defensive companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Dividends
KWS SAAT SE & Co. KGaA pays an annual dividend of €0.70 per share and has a dividend yield of 1.0%. HORNBACH Holding AG & Co. KGaA pays an annual dividend of €1.50 per share and has a dividend yield of 1.9%. KWS SAAT SE & Co. KGaA pays out 24.2% of its earnings in the form of a dividend. HORNBACH Holding AG & Co. KGaA pays out 12.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HORNBACH Holding AG & Co. KGaA is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of recent ratings and price targets for KWS SAAT SE & Co. KGaA and HORNBACH Holding AG & Co. KGaA, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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KWS SAAT SE & Co. KGaA | 0 | 4 | 0 | 0 | 2.00 |
HORNBACH Holding AG & Co. KGaA | 0 | 0 | 2 | 0 | 3.00 |
KWS SAAT SE & Co. KGaA presently has a consensus target price of €68.33, indicating a potential downside of 6.14%. HORNBACH Holding AG & Co. KGaA has a consensus target price of €116.00, indicating a potential upside of 48.34%. Given HORNBACH Holding AG & Co. KGaA's stronger consensus rating and higher possible upside, analysts plainly believe HORNBACH Holding AG & Co. KGaA is more favorable than KWS SAAT SE & Co. KGaA.
Valuation & Earnings
This table compares KWS SAAT SE & Co. KGaA and HORNBACH Holding AG & Co. KGaA's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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KWS SAAT SE & Co. KGaA | $1.28 billion | 1.88 | $95.60 million | €2.90 | 25.13 |
HORNBACH Holding AG & Co. KGaA | $5.49 billion | 0.23 | $195.50 million | €12.26 | 6.38 |
HORNBACH Holding AG & Co. KGaA has higher revenue and earnings than KWS SAAT SE & Co. KGaA. HORNBACH Holding AG & Co. KGaA is trading at a lower price-to-earnings ratio than KWS SAAT SE & Co. KGaA, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares KWS SAAT SE & Co. KGaA and HORNBACH Holding AG & Co. KGaA's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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KWS SAAT SE & Co. KGaA | N/A | N/A | N/A |
HORNBACH Holding AG & Co. KGaA | N/A | N/A | N/A |
Summary
HORNBACH Holding AG & Co. KGaA beats KWS SAAT SE & Co. KGaA on 8 of the 10 factors compared between the two stocks.