Home > Comparison > Consumer Defensive > EPC vs ACU
The strategic rivalry between Edgewell Personal Care Company and Acme United Corporation defines the current trajectory of the Household & Personal Products sector. Edgewell operates as a capital-intensive personal care manufacturer with global brand reach, while Acme United focuses on niche, high-margin safety and cutting products with diversified distribution. This analysis pits scale against specialization to identify which corporate model delivers superior risk-adjusted returns for a balanced portfolio.
Table of contents
Companies Overview
Edgewell and Acme United both hold notable positions in the Household & Personal Products sector in 2026.
Edgewell Personal Care Company: Diverse Personal Care Leader
Edgewell Personal Care Company dominates personal care with a broad product portfolio spanning wet shave, sun and skin care, and feminine care. Its revenue primarily stems from razor systems and branded skin care products. In 2026, the company strategically focuses on innovation within its core brands to sustain consumer loyalty and expand market penetration globally.
Acme United Corporation: Specialty Cutting and Safety Supplier
Acme United Corporation serves niche markets with specialized first aid, cutting, and safety products. It generates revenue through branded tools, knives, and first aid kits distributed to schools, offices, and industrial users. The company’s 2026 strategy emphasizes expanding product reach in international markets while enhancing direct and e-commerce sales channels.
Strategic Collision: Similarities & Divergences
Both companies operate in consumer essentials but diverge sharply in business philosophy. Edgewell pursues a wide consumer base with a focus on personal care innovation. Acme United targets specialized, technical products for safety and cutting needs. Their competitive battleground centers on brand loyalty versus niche market dominance. Investors face contrasting profiles: Edgewell offers scale and brand breadth while Acme United presents focused specialization and consistent market niches.
Income Statement Comparison
The following data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Edgewell Personal Care Company (EPC) | Acme United Corporation (ACU) |
|---|---|---|
| Revenue | 2.22B | 194.5M |
| Cost of Revenue | 1.30B | 118.1M |
| Operating Expenses | 828.3M | 62.2M |
| Gross Profit | 925.0M | 76.4M |
| EBITDA | 185.6M | 20.4M |
| EBIT | 96.8M | 14.4M |
| Interest Expense | 73.2M | 2.1M |
| Net Income | 25.4M | 10.0M |
| EPS | 0.53 | 2.71 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs a more efficient and profitable corporate engine from revenue to net income.
Edgewell Personal Care Company Analysis
Edgewell’s revenue remained flat near 2.2B from 2021 to 2025, but net income plunged 78% over the period, dropping to just 25M in 2025. Its gross margin stayed stable around 41.6%, yet net margin shrank to a mere 1.14%, signaling deteriorating profitability. The sharp EBIT decline (-51% year-over-year) highlights worsening operating efficiency and margin compression.
Acme United Corporation Analysis
Acme United grew revenue steadily by 18.6% over five years, hitting 194M in 2024. Net income climbed 24%, reaching 10M, supported by a solid 39.3% gross margin and a more robust net margin of 5.15%. Despite a recent EBIT drop of 44%, Acme maintains better margin health and earnings momentum, showing more consistent profitability growth.
Verdict: Margin Resilience vs. Earnings Collapse
Acme United outperforms Edgewell on fundamental income statement metrics, with stronger net margin, healthier earnings growth, and superior revenue expansion. Edgewell’s stagnant revenue and collapsing net income reveal operational struggles and margin contraction. For investors, Acme’s stable profitability profile offers a more attractive risk-return balance than Edgewell’s deteriorating earnings power.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Edgewell Personal Care Company (EPC) | Acme United Corporation (ACU) |
|---|---|---|
| ROE | 1.64% | 9.37% |
| ROIC | 3.00% | 8.16% |
| P/E | 38.07 | 13.78 |
| P/B | 0.62 | 1.29 |
| Current Ratio | 1.76 | 4.17 |
| Quick Ratio | 0.90 | 1.71 |
| D/E (Debt to Equity) | 0.91 | 0.31 |
| Debt-to-Assets | 37.6% | 20.3% |
| Interest Coverage | 1.32 | 6.79 |
| Asset Turnover | 0.59 | 1.20 |
| Fixed Asset Turnover | 6.02 | 5.33 |
| Payout ratio | 115.4% | 22.2% |
| Dividend yield | 3.03% | 1.61% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios serve as a company’s DNA, uncovering hidden risks and operational strengths that numbers alone may obscure.
Edgewell Personal Care Company
Edgewell’s profitability metrics struggle, with a low ROE of 1.64% and net margin at 1.14%, signaling weak core earnings. The stock trades at a stretched P/E of 38.07, despite a favorable P/B of 0.62. It offers a solid dividend yield of 3.03%, providing shareholder returns amid limited reinvestment capacity.
Acme United Corporation
Acme United posts stronger profitability, with a 9.37% ROE and a neutral net margin of 5.15%, indicating more efficient operations. The valuation looks attractive with a P/E of 13.78 and a favorable P/B of 1.29. Though it yields a modest 1.61% dividend, Acme’s robust cash flow signals potential for growth and capital allocation.
Premium Valuation vs. Operational Safety
Acme United offers a better balance of profitability, valuation, and financial health, reflected in its favorable ratio profile. Edgewell’s high valuation compounds risk amid weak earnings. Investors prioritizing operational efficiency and valuation discipline may find Acme’s profile more fitting.
Which one offers the Superior Shareholder Reward?
I observe that Edgewell Personal Care Company (EPC) pays a 3.03% dividend yield with a high payout ratio of 115%, suggesting less sustainable dividends. EPC’s free cash flow per share is $0.87, with moderate buybacks implied by capital allocation ratios. Acme United Corporation (ACU) yields 1.61% with a conservative 22% payout ratio, supporting dividend sustainability. ACU’s free cash flow per share stands at $1.30, alongside a stronger buyback intensity reflected in lower debt ratios and solid cash flow coverage. I conclude ACU offers a more balanced, sustainable shareholder reward with better total return prospects in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Edgewell Personal Care Company and Acme United Corporation:
Edgewell excels in discounted cash flow (5 vs. 3) and price-to-book valuation (4 vs. 3), indicating strong cash generation and attractive asset pricing. Acme United leads modestly in return on equity (3 vs. 2), return on assets (3 vs. 2), debt-to-equity (3 vs. 2), and price-to-earnings (2 vs. 1), reflecting balanced operational efficiency and lower financial risk. Acme presents a more balanced profile, while Edgewell relies heavily on DCF strength and asset valuation.
Bankruptcy Risk: Solvency Showdown
Edgewell’s Altman Z-Score of 1.46 places it in the distress zone, signaling high bankruptcy risk. Acme’s 4.08 score in the safe zone suggests solid financial resilience and survival prospects in this cycle:
Financial Health: Quality of Operations
Acme United posts a stronger Piotroski F-Score of 7, indicating robust financial health and operational quality. Edgewell’s 6 score is average, raising mild concerns regarding internal metrics relative to Acme:
How are the two companies positioned?
This section dissects the operational DNA of EPC and ACU by comparing their revenue distribution by segment alongside their strengths and weaknesses. The goal is to confront their economic moats and determine which model offers the most resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Edgewell Personal Care and Acme United diversify income streams and where their primary sector bets lie:
Edgewell dominates with a razor-focused portfolio, anchoring 1.1B in Razors and blades, dwarfing other segments like Sun care at 459M. This concentration signals strong ecosystem lock-in but heightens risk if consumer preferences shift. Acme United pivots between Product A at 75M and Product B at 119M, showcasing a balanced, albeit narrower, mix that limits exposure to any single product risk.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Edgewell Personal Care Company (EPC) and Acme United Corporation (ACU):
EPC Strengths
- Diverse product portfolio including razors, sun care, feminine care, and infant products
- Strong US and non-US revenue base around 2.2B total
- Favorable current ratio at 1.76 and fixed asset turnover at 6.02
- Dividend yield at 3.03% supporting income investors
ACU Strengths
- Favorable profitability metrics with net margin at 5.15% and ROIC at 8.16%
- Strong liquidity with current ratio at 4.17 and quick ratio at 1.71
- Lower debt levels with debt to assets at 20.25% and high interest coverage at 6.9
- Leading asset turnover at 1.2 and favorable P/E at 13.78
EPC Weaknesses
- Low profitability with net margin at 1.14% and ROE at 1.64%
- Interest coverage is weak at 1.32, signaling potential debt service risk
- P/E high at 38.07, possibly overvalued relative to earnings
- Quick ratio is neutral at 0.9, indicating moderate short-term liquidity
ACU Weaknesses
- ROE remains unfavorable at 9.37% despite other positives
- Current ratio at 4.17 rated unfavorable, may suggest inefficient asset use
- Dividend yield neutral at 1.61%, less attractive for income focus
EPC’s strengths lie in its broad product mix and balanced geographic exposure, but profitability challenges and debt coverage remain concerns. ACU benefits from stronger profitability, liquidity, and capital structure metrics, though its elevated current ratio and moderate ROE highlight areas for operational improvement. Both companies face distinct financial and strategic factors shaping their market positioning.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable barrier protecting long-term profits from the relentless erosion of competition:
Edgewell Personal Care Company: Intangible Assets Moat
Edgewell leans on strong brand portfolios and product differentiation, reflected in stable gross margins near 42%. Yet, declining ROIC signals a weakening moat in 2026 amid margin and profit pressures.
Acme United Corporation: Cost Advantage Moat
Acme’s competitive edge stems from efficient capital use and favorable gross margins around 39%. Despite a slightly declining ROIC, it sustains value creation more effectively than Edgewell, with growth opportunities in niche safety and cutting tools.
Brand Equity vs. Operational Efficiency: The Moat Verdict
Edgewell’s intangible asset moat is deep but eroding, while Acme’s cost advantage moat is narrower yet more durable. Acme is better positioned to defend market share through capital efficiency and focused innovation.
Which stock offers better returns?
The past year reveals stark contrasts in price dynamics, with one stock experiencing sharp declines and another showing steady gains amid evolving trading volumes.
Trend Comparison
Edgewell Personal Care Company (EPC) shows a bearish trend over the past 12 months with a -49.39% price change and accelerating decline. The stock’s volatility is high, ranging from 40.38 to 16.73.
Acme United Corporation (ACU) posts a bullish trend with a 5.21% gain over 12 months and accelerating upward momentum. Price moved between 33.7 and 46.99, with moderate volatility.
Comparing both, ACU delivered the highest market performance. EPC’s sharp decline contrasts with ACU’s steady price appreciation and stronger buyer dominance.
Target Prices
Edgewell Personal Care Company shows a clear target price consensus among analysts.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Edgewell Personal Care Company | 20 | 23 | 21.5 |
Analysts expect Edgewell’s price to rise 5-18% from the current 19.46 USD, signaling moderate upside potential. No verified target price data is available for Acme United Corporation.
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How do institutions grade them?
The following summarizes institutional grades assigned to Edgewell Personal Care Company and Acme United Corporation:
Edgewell Personal Care Company Grades
This table shows recent grades from reputable financial institutions for Edgewell Personal Care Company:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Overweight | 2026-01-05 |
| Morgan Stanley | Maintain | Equal Weight | 2025-11-18 |
| Barclays | Maintain | Equal Weight | 2025-11-14 |
| Wells Fargo | Maintain | Overweight | 2025-11-14 |
| RBC Capital | Maintain | Outperform | 2025-11-14 |
| Wells Fargo | Maintain | Overweight | 2025-09-25 |
| Canaccord Genuity | Maintain | Buy | 2025-08-06 |
| Morgan Stanley | Upgrade | Equal Weight | 2025-08-06 |
| UBS | Maintain | Neutral | 2025-08-06 |
| Barclays | Maintain | Equal Weight | 2025-08-06 |
Acme United Corporation Grades
This table shows the available institutional grade for Acme United Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Buy | 2016-07-01 |
Which company has the best grades?
Edgewell Personal Care Company holds consistently recent and varied grades, mostly Overweight and Outperform. Acme United’s only rating dates back to 2016 with a Buy. Edgewell’s fresher and broader coverage may offer investors more current insights.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Edgewell Personal Care Company (EPC)
- Faces intense competition in personal care with pressure on margins and brand differentiation.
Acme United Corporation (ACU)
- Operates in niche cutting and first aid markets with moderate competitive pressure and product diversification.
2. Capital Structure & Debt
Edgewell Personal Care Company (EPC)
- Moderate leverage with debt-to-assets at 37.6%, interest coverage weak at 1.32x, raising refinancing risk.
Acme United Corporation (ACU)
- Low leverage with debt-to-assets at 20.3%, strong interest coverage at 6.9x, indicating solid financial resilience.
3. Stock Volatility
Edgewell Personal Care Company (EPC)
- Lower beta of 0.62 suggests less stock volatility, but wide price range signals investor uncertainty.
Acme United Corporation (ACU)
- Slightly higher beta of 0.74 reflects moderate volatility, though stable price range supports steady trading.
4. Regulatory & Legal
Edgewell Personal Care Company (EPC)
- Exposed to stringent regulations on personal care product safety and environmental compliance.
Acme United Corporation (ACU)
- Faces regulatory scrutiny primarily in product safety and international trade compliance.
5. Supply Chain & Operations
Edgewell Personal Care Company (EPC)
- Global supply chain complexity increases risk of disruptions and cost inflation.
Acme United Corporation (ACU)
- Smaller scale and diversified suppliers reduce operational risk but limit economies of scale.
6. ESG & Climate Transition
Edgewell Personal Care Company (EPC)
- ESG pressures mount from consumer scrutiny on sustainability and environmental footprint.
Acme United Corporation (ACU)
- ESG risks moderate, with ongoing improvements in product safety and supply chain transparency.
7. Geopolitical Exposure
Edgewell Personal Care Company (EPC)
- Significant international sales expose EPC to currency and geopolitical risks in emerging markets.
Acme United Corporation (ACU)
- Limited geopolitical exposure due to focused regional sales and stable supplier base.
Which company shows a better risk-adjusted profile?
Acme United’s strongest risk lies in maintaining market share amid niche competition, while Edgewell’s greatest risk is its high financial leverage and weak interest coverage. Acme United’s low debt and strong liquidity deliver a superior risk-adjusted profile. Recent financial scores reveal Edgewell’s Altman Z-Score in distress zone, raising bankruptcy concerns. Meanwhile, Acme’s safe zone Z-Score and higher Piotroski Score confirm healthier financial stability.
Final Verdict: Which stock to choose?
Edgewell Personal Care Company’s superpower lies in its strong asset turnover and solid dividend yield, reflecting efficient capital use and shareholder returns. However, its declining profitability and negative ROIC trend signal a need for caution. It suits an aggressive growth portfolio willing to weather operational headwinds for potential rebound.
Acme United Corporation benefits from a clearer strategic moat with its robust balance sheet, higher operating returns, and favorable valuation multiples. It offers better financial stability and a stronger income growth trajectory than Edgewell, fitting well with a GARP (Growth at a Reasonable Price) portfolio seeking steady growth with controlled risk.
If you prioritize aggressive capital efficiency and dividend income, Edgewell might be compelling despite its value destruction risk. However, if you seek stability and more consistent value creation, Acme outshines as the safer choice with its stronger financial health and valuation discipline. Both present analytical scenarios aligned with different risk appetites and investment horizons.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Edgewell Personal Care Company and Acme United Corporation to enhance your investment decisions:
