Home > Comparison > Consumer Defensive > CLX vs ACU
The strategic rivalry between The Clorox Company and Acme United Corporation shapes the Consumer Defensive sector’s competitive landscape. Clorox dominates as a diversified household products giant with global reach, while Acme United operates as a specialized supplier of first aid and cutting tools. This analysis contrasts their business models and growth trajectories to identify which offers a superior risk-adjusted return, guiding investors toward the best fit for a balanced portfolio.
Table of contents
Companies Overview
The Clorox Company and Acme United Corporation both carve notable niches in the household and personal products market.
The Clorox Company: Global Consumer Products Powerhouse
The Clorox Company dominates the consumer and professional cleaning products sector worldwide. It generates revenue through diversified segments including Health and Wellness, Household, Lifestyle, and International. In 2026, Clorox’s strategic focus centers on expanding its health-oriented brands and boosting international market penetration, leveraging its established portfolio like Clorox, Burt’s Bees, and Brita to sustain growth.
Acme United Corporation: Specialty Tools and Safety Supplier
Acme United Corporation specializes in first aid, safety, and cutting tools catering to various markets including industrial and retail. Its revenue stems from sales of branded products like Westcott scissors and PhysiciansCare first aid kits. For 2026, Acme United emphasizes product innovation and expanding distribution channels to strengthen its foothold in North America and Europe’s niche safety and office supply markets.
Strategic Collision: Similarities & Divergences
Both companies operate within consumer defensive sectors but contrast sharply in scale and product breadth. Clorox pursues a broad, global consumer goods strategy with a focus on health and lifestyle, while Acme United targets specialized, niche markets with precision tools and safety products. Their primary competition lies in household essentials, yet their investment profiles differ: Clorox offers stable, large-cap exposure, whereas Acme United presents a smaller-cap, focused growth opportunity.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | The Clorox Company (CLX) | Acme United Corporation (ACU) |
|---|---|---|
| Revenue | 7.10B | 194M |
| Cost of Revenue | 3.91B | 118M |
| Operating Expenses | 2.02B | 62M |
| Gross Profit | 3.19B | 76M |
| EBITDA | 1.40B | 20M |
| EBIT | 1.18B | 14M |
| Interest Expense | 101M | 2.08M |
| Net Income | 810M | 10M |
| EPS | 6.56 | 2.71 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company operates with superior efficiency and sustainable profitability.
The Clorox Company Analysis
Clorox’s revenue has been largely flat, hovering near 7.1B in recent years, while net income surged from 149M in 2023 to 810M in 2025. Its gross margin stands robust at 45%, and net margin improved to 11.4%, reflecting tighter cost control and operating leverage. The 2025 year shows strong momentum with net income and EBIT more than doubling, signaling operational efficiency gains.
Acme United Corporation Analysis
Acme United’s revenue grew steadily to 194M in 2024, supported by a 23.7% net income increase over five years. However, its net margin remains modest at 5.15%, with EBIT margin neutral at 7.4%. The latest year saw declines in EBIT and net margin by over 40%, indicating short-term pressure on profitability despite solid top-line growth over the period.
Margin Strength vs. Growth Trajectory
Clorox dominates in margin quality and recent earnings acceleration, while Acme United delivers consistent revenue growth but weaker profitability. Clorox’s superior margin expansion and profit momentum make it the clear fundamental winner. Investors favor companies with expanding margins and earnings power over those with slower margin progress despite revenue growth.
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 | The Clorox Company (CLX) | Acme United Corporation (ACU) |
|---|---|---|
| ROE | 2.52% | 9.37% |
| ROIC | 24.14% | 8.16% |
| P/E | 18.31 | 13.78 |
| P/B | 46.20 | 1.29 |
| Current Ratio | 0.84 | 4.17 |
| Quick Ratio | 0.57 | 1.71 |
| D/E | 8.97 | 0.31 |
| Debt-to-Assets | 51.79% | 20.25% |
| Interest Coverage | 11.67 | 6.79 |
| Asset Turnover | 1.28 | 1.20 |
| Fixed Asset Turnover | 4.44 | 5.33 |
| Payout Ratio | 74.32% | 22.17% |
| Dividend Yield | 4.06% | 1.61% |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, unveiling hidden risks and operational strengths that shape investor decisions.
The Clorox Company
Clorox displays robust profitability with a striking 252% ROE and favorable 11.4% net margin, signaling operational excellence. The stock trades at a neutral 18.3 P/E but a stretched 46.2 P/B, reflecting market skepticism. A 4.06% dividend yield rewards shareholders, balancing a disciplined capital return amid moderate leverage concerns.
Acme United Corporation
Acme United shows modest profitability with a 9.4% ROE and neutral 5.15% net margin, indicating cautious efficiency. The valuation appears attractive at a 13.8 P/E and 1.29 P/B, suggesting undervaluation. The company retains a modest 1.61% dividend yield and maintains conservative leverage, supporting steady growth over aggressive payouts.
Premium Valuation vs. Operational Safety
Clorox offers superior profitability but at a premium price and higher leverage risk. Acme United provides a more balanced valuation and healthier financial structure. Investors prioritizing high returns may favor Clorox, while those seeking stability and valuation discipline might lean toward Acme United.
Which one offers the Superior Shareholder Reward?
I compare Clorox (CLX) and Acme United (ACU) on dividends, buybacks, and payout sustainability. Clorox yields 4.06% with a high 74% payout ratio, funded by strong free cash flow (FCF) of 6.16/share and robust buybacks. Acme yields 1.61%, pays only 22% of income, and retains cash for growth, with modest buybacks. Historically, Clorox’s model offers steady income but risks high leverage (debt to equity near 9x). Acme’s lower yield but strong balance sheet and reinvestment strategy suggest sustainable growth. I find Clorox’s total return more attractive for income-focused investors in 2026, but Acme suits growth-oriented portfolios better.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of The Clorox Company and Acme United Corporation:
Acme United displays a more balanced profile, scoring moderately across DCF, ROE, ROA, Debt/Equity, and Valuation metrics. Clorox relies heavily on asset efficiency (ROA score 5) but suffers from weak equity returns (ROE score 1) and high leverage (Debt/Equity score 1). Acme’s diversified strengths suggest steadier operational resilience, while Clorox’s profile signals dependence on specific operational efficiencies amid financial risks.
Bankruptcy Risk: Solvency Showdown
Acme United’s Altman Z-Score of 4.14 versus Clorox’s 3.38 places both firms safely above distress thresholds but highlights Acme’s stronger solvency and lower bankruptcy risk in this cycle:
Financial Health: Quality of Operations
Acme’s Piotroski F-Score of 7 reflects robust financial health, outperforming Clorox’s average score of 5. Clorox shows moderate internal metric risks, while Acme demonstrates stronger profitability, liquidity, and operational efficiency:
How are the two companies positioned?
This section dissects the operational DNA of Clorox and Acme United by comparing their revenue distribution and internal strengths and weaknesses. The goal is to confront their economic moats to reveal which model offers the more resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how The Clorox Company and Acme United Corporation diversify their income streams and where their primary sector bets lie:
The Clorox Company anchors revenue in Health and Wellness at $2.7B, supported by Household, International, and Lifestyle segments, reflecting strong diversification. Acme United pivots on Product B at $119M, with Product A trailing at $75M, showing a narrower focus. Clorox’s diversified model reduces concentration risk and supports ecosystem lock-in. Acme’s reliance on two main products heightens vulnerability but may allow focused innovation and market penetration.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of The Clorox Company and Acme United Corporation:
CLX Strengths
- Diversified product segments including Health, Household, and Lifestyle
- High net margin at 11.4%
- ROIC of 24.14% well above WACC 6.04%
- Strong global presence with $6B US and $1B foreign sales
- Robust asset turnover ratios
- Favorable dividend yield at 4.06%
ACU Strengths
- Favorable P/E at 13.78 and P/B at 1.29
- Moderate diversification with two main product lines
- Low debt-to-assets at 20.25% supports financial flexibility
- Favorable quick ratio of 1.71 indicates liquidity
- Solid fixed asset turnover at 5.33
- Global sales diversified across US, Europe, and Canada
CLX Weaknesses
- High debt-to-assets at 51.79% increases financial risk
- Low current and quick ratios (0.84 and 0.57) signal liquidity concerns
- Elevated debt-to-equity at 8.97
- Unfavorable P/B ratio at 46.2 suggests overvaluation
- Exposure to fluctuating international markets
ACU Weaknesses
- Lower net margin at 5.15% reflects profitability pressure
- ROE at 9.37% lags industry averages
- Current ratio of 4.17 may indicate inefficient asset use
- Dividend yield neutral at 1.61%
- Less diversified revenue streams compared to CLX
Overall, CLX showcases strong profitability and product diversification but faces liquidity and leverage risks. ACU maintains financial flexibility and valuation appeal but must address profitability and operational efficiency to strengthen its competitive position.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat shields long-term profits from relentless competitive pressure. Without it, market share and margins quickly erode:
The Clorox Company: Intangible Assets and Brand Power
Clorox’s moat stems from powerful brands and product diversification. It posts a robust ROIC 18% above WACC, signaling durable value creation. Expansion in health and wellness products deepens its moat in 2026.
Acme United Corporation: Niche Cost Advantage
Acme’s moat relies on specialized cutting and safety products with modest cost advantages. Its ROIC barely exceeds WACC by 1.2%, showing declining profitability. Growth hinges on expanding international reach amid rising competition.
Durable Brand Power vs. Specialized Cost Edge
Clorox’s wide moat, fueled by strong intangible assets and rising ROIC, outmatches Acme’s narrow, weakening cost advantage. Clorox stands better poised to defend and grow market share through innovation and brand loyalty.
Which stock offers better returns?
The past year highlights contrasting trajectories: The Clorox Company’s stock fell sharply while Acme United Corporation showed modest gains with steady acceleration.
Trend Comparison
The Clorox Company’s stock declined 23.43% over 12 months, signaling a bearish trend with accelerating losses. Volatility remains high with a 19.31 std deviation, hitting a low of 98.31 and a high of 169.3.
Acme United Corporation rose 3.45% over the same period, marking a bullish trend with accelerating gains. Its volatility is lower at 2.78 std deviation, trading between 33.7 and 46.99.
Acme United outperformed The Clorox Company, delivering positive returns while Clorox faced significant declines over the past year.
Target Prices
The Clorox Company shows a clear analyst consensus with a moderate upside potential.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| The Clorox Company | 94 | 152 | 117.71 |
Analysts expect The Clorox Company’s stock to trade modestly above the current price of 114.98, reflecting steady confidence. No verified target price data is available for Acme United Corporation.
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How do institutions grade them?
Institutional grades for The Clorox Company and Acme United Corporation are summarized below:
The Clorox Company Grades
The following table shows recent grades from major financial institutions for Clorox:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Wells Fargo | Maintain | Equal Weight | 2026-01-23 |
| JP Morgan | Maintain | Neutral | 2026-01-16 |
| UBS | Maintain | Neutral | 2026-01-14 |
| TD Cowen | Maintain | Hold | 2026-01-08 |
| Goldman Sachs | Maintain | Sell | 2026-01-07 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-05 |
| Citigroup | Maintain | Neutral | 2025-12-17 |
| Citigroup | Maintain | Neutral | 2025-11-04 |
| JP Morgan | Maintain | Neutral | 2025-11-04 |
| Wells Fargo | Maintain | Equal Weight | 2025-11-04 |
Acme United Corporation Grades
The following table shows the most recent available grade for Acme United:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Buy | 2016-07-01 |
Which company has the best grades?
Clorox’s grades mostly range from Hold to Sell, reflecting caution or neutrality by major banks. Acme United has a single, old Buy rating from 2016. Clorox’s current, diversified institutional opinions provide clearer, more reliable market signals than Acme’s dated data. Investors may weigh this disparity in recent institutional confidence accordingly.
Risks specific to each company
The following categories identify critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
The Clorox Company
- Operates in a highly competitive global consumer products market with strong brand portfolios.
Acme United Corporation
- Faces niche competition in specialized first aid and cutting tools segments, limiting scale advantages.
2. Capital Structure & Debt
The Clorox Company
- High debt-to-assets ratio (51.79%) signals elevated leverage risk.
Acme United Corporation
- Low debt-to-assets ratio (20.25%) reflects a conservative capital structure.
3. Stock Volatility
The Clorox Company
- Beta of 0.607 indicates lower volatility than the market, appealing for stability seekers.
Acme United Corporation
- Beta of 0.737 shows moderate volatility, typical for smaller caps.
4. Regulatory & Legal
The Clorox Company
- Exposure to stringent consumer safety and environmental regulations globally.
Acme United Corporation
- Regulatory risk concentrated in product safety standards for first aid and tools.
5. Supply Chain & Operations
The Clorox Company
- Complex global supply chain vulnerable to disruptions and cost inflation.
Acme United Corporation
- Smaller scale supply chain with geographic concentration but less complexity.
6. ESG & Climate Transition
The Clorox Company
- Faces pressure to reduce environmental impact and align with climate goals across diverse product lines.
Acme United Corporation
- Emerging ESG initiatives but less public scrutiny due to smaller footprint.
7. Geopolitical Exposure
The Clorox Company
- Significant international operations expose it to geopolitical tensions and trade risks.
Acme United Corporation
- Primarily North American focus limits exposure but local regulatory changes remain a risk.
Which company shows a better risk-adjusted profile?
The Clorox Company’s largest risk is its high leverage, which could amplify challenges during economic downturns. Acme United’s main concern lies in its limited scale and niche market vulnerability. Despite smaller size, Acme’s conservative debt and strong liquidity afford it a superior risk-adjusted profile. Notably, Clorox’s current ratio under 1 signals liquidity concerns, reinforcing caution amid its leverage.
Final Verdict: Which stock to choose?
The Clorox Company’s superpower lies in its proven ability to create value with a durable competitive moat and steadily growing ROIC well above cost of capital. Its main point of vigilance is the stretched balance sheet, signaling elevated financial risk. CLX suits portfolios focused on stable income and value creation.
Acme United Corporation boasts a strategic moat driven by a lean asset base and solid free cash flow generation at an attractive valuation. It offers a safer financial profile with lower leverage and stronger liquidity than CLX. ACU fits investors seeking growth at reasonable prices with moderate risk tolerance.
If you prioritize durable competitive advantages and value creation, The Clorox Company outshines with stronger profitability and a proven moat. However, if you seek better financial stability and attractive valuation in a smaller, growing firm, Acme United offers a compelling scenario. Each stock aligns with distinct investor risk and return profiles.
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 The Clorox Company and Acme United Corporation to enhance your investment decisions:
