Contrasting Reynolds Consumer Products (NASDAQ:REYN) and Pigeon (OTCMKTS:PGENY)

Pigeon (OTCMKTS:PGENY) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Dividends

Pigeon pays an annual dividend of $0.08 per share and has a dividend yield of 3.6%. Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. Pigeon pays out 61.5% of its earnings in the form of a dividend. Reynolds Consumer Products pays out 63.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

26.8% of Reynolds Consumer Products shares are held by institutional investors. 0.2% of Reynolds Consumer Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Pigeon and Reynolds Consumer Products”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pigeon	$688.99 million	1.53	$55.26 million	$0.13	17.00
Reynolds Consumer Products	$3.70 billion	1.36	$352.00 million	$1.46	16.39

Reynolds Consumer Products has higher revenue and earnings than Pigeon. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Pigeon, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Pigeon has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Pigeon and Reynolds Consumer Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pigeon	0	0	0	0	0.00
Reynolds Consumer Products	0	8	2	0	2.20

Reynolds Consumer Products has a consensus price target of $26.63, indicating a potential upside of 11.26%. Given Reynolds Consumer Products’ stronger consensus rating and higher possible upside, analysts plainly believe Reynolds Consumer Products is more favorable than Pigeon.

Profitability

This table compares Pigeon and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pigeon	9.17%	12.53%	9.66%
Reynolds Consumer Products	8.20%	15.88%	7.01%

Summary

Reynolds Consumer Products beats Pigeon on 11 of the 16 factors compared between the two stocks.

About Pigeon

Pigeon Corporation, together with its subsidiaries, engages in the manufacture, sale, import, and export of baby and child-care products, maternity items, women’s care products, home healthcare products, and nursing care products in Japan and internationally. The company operates in four segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. The company is involved in the provision of baby and mother care products, such as nursing bottles and nipples, toiletries, breast pads, breast pumps, nipple care products, breast milk storage bags, and breastfeeding-related products under Pigeon and Lansinoh brands. It also offers non-woven products, baby strollers, aging-prevention products, wet wipes, skincare products, cleaning and disinfecting products, and elder care products and services. In addition, the company provides child-minding and daycare services, in-home nursing care support services, outpatient care facility services, operation of in-company childcare facilities, daycare services, event childcare services, babysitter dispatch services, preschool education services, and at-home elder care services. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.