Critical Review: Diversey (DSEY) & Its Rivals

Diversey (NASDAQ:DSEYGet Free Report) is one of 65 public companies in the “Personal Services” industry, but how does it compare to its rivals? We will compare Diversey to related businesses based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

Diversey has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Diversey’s rivals have a beta of 0.99, indicating that their average stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Diversey and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Diversey $2.77 billion -$169.30 million -14.47
Diversey Competitors $860.80 million $8.55 million 302.94

Diversey has higher revenue, but lower earnings than its rivals. Diversey 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 Recommendations

This is a summary of current ratings and target prices for Diversey and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diversey 1 10 0 0 1.91
Diversey Competitors 210 984 1663 68 2.54

Diversey presently has a consensus price target of $7.57, indicating a potential downside of 9.81%. As a group, “Personal Services” companies have a potential upside of 88.85%. Given Diversey’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Diversey has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

94.4% of Diversey shares are owned by institutional investors. Comparatively, 44.8% of shares of all “Personal Services” companies are owned by institutional investors. 3.1% of Diversey shares are owned by company insiders. Comparatively, 23.3% of shares of all “Personal Services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Diversey and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diversey -6.56% 12.53% 2.00%
Diversey Competitors -18.19% -23.24% -2.09%

Summary

Diversey rivals beat Diversey on 7 of the 13 factors compared.

Diversey Company Profile

(Get Free Report)

Diversey Holdings, Ltd., through its subsidiaries, provides hygiene, infection prevention, and cleaning solutions in Europe, North America, the Asia Pacific, the Middle East, Africa, and Latin America. It operates through two segments, Institutional, and Food & Beverage. The Institutional segment offers products, solutions, equipment, and machines, including infection prevention and personal care products, floor and building care chemicals, kitchen and mechanical ware wash chemicals and machines, dosing and dispensing equipment, and floor care machines, as well as engineering, consulting, and training services related to productivity management, water and energy management, and risk management. This segment serves customers in the healthcare, education, food service, retail and grocery, hospitality, and building service contractors industries. The Food & Beverage segment provides a range of products, solutions, equipment, and machines, such as chemical products, engineering and equipment solutions, knowledge-based services, training through its Diversey Hygiene Academy, and water treatment. This segment serves customers in the brewing, beverage, dairy, processed foods, pharmaceutical, and agriculture industries. Diversey Holdings, Ltd. was founded in 1923 and is headquartered in Fort Mill, South Carolina. As of July 5, 2023, Diversey Holdings, Ltd. operates as a subsidiary of Solenis LLC.

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