Financial Review: GoPro (NASDAQ:GPRO) versus Newell Brands (NASDAQ:NWL)

GoPro (NASDAQ:GPRO) and Newell Brands (NASDAQ:NWL) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Institutional & Insider Ownership

70.1% of GoPro shares are held by institutional investors. Comparatively, 92.5% of Newell Brands shares are held by institutional investors. 18.1% of GoPro shares are held by company insiders. Comparatively, 1.6% of Newell Brands shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares GoPro and Newell Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoPro	$651.54 million	0.33	-$93.49 million	($0.99)	-1.19
Newell Brands	$7.20 billion	0.34	-$285.00 million	($0.53)	-10.81

GoPro has higher earnings, but lower revenue than Newell Brands. Newell Brands is trading at a lower price-to-earnings ratio than GoPro, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

GoPro has a beta of 2.43, meaning that its stock price is 143% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares GoPro and Newell Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GoPro	-28.52%	-411.41%	-28.86%
Newell Brands	-3.05%	12.31%	2.77%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GoPro and Newell Brands, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoPro	2	0	0	0	1.00
Newell Brands	2	4	3	1	2.30

Newell Brands has a consensus target price of $6.66, suggesting a potential upside of 16.16%. Given Newell Brands’ stronger consensus rating and higher possible upside, analysts plainly believe Newell Brands is more favorable than GoPro.

Summary

Newell Brands beats GoPro on 11 of the 15 factors compared between the two stocks.

About GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.