Reckitt Benckiser Group (OTCMKTS:RBGLY) vs. Central Garden & Pet (NASDAQ:CENTA) Financial Review

Central Garden & Pet (NASDAQ:CENTA) and Reckitt Benckiser Group (OTCMKTS:RBGLY) are both consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent recommendations for Central Garden & Pet and Reckitt Benckiser Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	1	1	3	1	2.67
Reckitt Benckiser Group	1	2	3	2	2.75

Central Garden & Pet presently has a consensus price target of $46.67, indicating a potential upside of 22.23%. Given Central Garden & Pet’s higher probable upside, equities analysts plainly believe Central Garden & Pet is more favorable than Reckitt Benckiser Group.

Insider and Institutional Ownership

50.8% of Central Garden & Pet shares are held by institutional investors. Comparatively, 0.1% of Reckitt Benckiser Group shares are held by institutional investors. 20.3% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Central Garden & Pet and Reckitt Benckiser Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.13 billion	0.76	$162.84 million	$2.68	14.25
Reckitt Benckiser Group	$18.73 billion	2.39	$4.20 billion	N/A	N/A

Reckitt Benckiser Group has higher revenue and earnings than Central Garden & Pet.

Volatility and Risk

Central Garden & Pet has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Reckitt Benckiser Group has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Central Garden & Pet and Reckitt Benckiser Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	5.39%	11.13%	4.93%
Reckitt Benckiser Group	N/A	N/A	N/A

Summary

Central Garden & Pet beats Reckitt Benckiser Group on 7 of the 12 factors compared between the two stocks.

About Central Garden & Pet

Central Garden & Pet Co. engages in the production and distribution of branded and private label products for the lawn, garden, and pet supplies markets. It operates through the Pet and Garden segments. The Pet segment focuses on dog and cat supplies such as dog treats and chews, toys, pet beds and containment, grooming products, waste management and training pads, supplies for aquatics, small animals, reptiles and pet birds including toys, cages and habitats, bedding, food and supplements, products for equine and livestock, animal and household health and insect control products, live fish, and small animals, as well as outdoor cushions. The Garden segment includes lawn and garden consumables such as grass, vegetable, flower and herb seed, wild bird feed, bird houses and other birding accessories, weed, grass, and other herbicides, insecticide and pesticide products, fertilizers, and live plants. The company was founded by William E. Brown in 1980 and is headquartered in Walnut Creek, CA.

About Reckitt Benckiser Group

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products worldwide. It offers acne treatment creams, facial washes, and cleansing pads; germ protection products; condoms; heartburn and indigestion solutions; joints health products; chest congestion, cough, and sinus remedies; brain health products; migraine-headaches and rheumatic pain products; sore throat medications; and hair removal products under the Airborne, Clearasil, Dettol, Durex, Gaviscon, Move Free, Neuriva, Nurofen, Mucinex, Strepsils, and Veet brands. The company also offers home fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfecting sprays wipes, laundry sanitisers, and others; sprays, baits, and plug-ins for pest control; stain removals; and fabric washing under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands. In addition, it provides nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.