Diversey (NASDAQ:DSEY – Get Free Report) and Regis (NYSE:RGS – Get Free Report) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.
Earnings & Valuation
This table compares Diversey and Regis’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diversey | $2.77 billion | 0.98 | -$169.30 million | ($0.58) | -14.47 |
| Regis | $275.97 million | 0.22 | -$85.86 million | ($0.99) | -1.34 |
Regis has lower revenue, but higher earnings than Diversey. Diversey is trading at a lower price-to-earnings ratio than Regis, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Diversey | -6.56% | 12.53% | 2.00% |
| Regis | -18.56% | N/A | -1.25% |
Analyst Ratings
This is a summary of recent ratings and target prices for Diversey and Regis, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diversey | 1 | 10 | 0 | 0 | 1.91 |
| Regis | 0 | 0 | 1 | 0 | 3.00 |
Diversey presently has a consensus price target of $7.57, indicating a potential downside of 9.81%. Given Diversey’s higher possible upside, analysts plainly believe Diversey is more favorable than Regis.
Institutional & Insider Ownership
94.4% of Diversey shares are held by institutional investors. Comparatively, 25.0% of Regis shares are held by institutional investors. 3.1% of Diversey shares are held by company insiders. Comparatively, 1.6% of Regis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Diversey has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Regis has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.
Summary
Diversey beats Regis on 10 of the 14 factors compared between the two stocks.
About Diversey
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.
About Regis
Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, Canada, Puerto Rico, and the United Kingdom. The company operates in two segments, Franchise Salons and Company-Owned Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also offers mobile applications; and operates accredited cosmetology schools. Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, First Choice Haircutters, and Magicuts concepts names. As of June 30, 2022, the company operated 5,576 salons, such as 5,395 franchised salons, 105 company-owned salons, and 76 non-controlling ownership salons. Regis Corporation was founded in 1922 and is headquartered in Minneapolis, Minnesota.
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