Reviewing Ceconomy (OTCMKTS:MTTRY) and Reynolds Consumer Products (NASDAQ:REYN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reynolds Consumer Products	8.20%	15.88%	7.01%
Ceconomy	0.54%	39.15%	2.15%

Institutional & Insider Ownership

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

Volatility & Risk

Reynolds Consumer Products has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Ceconomy has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.71 billion	1.32	$352.00 million	$1.46	15.95
Ceconomy	$25.51 billion	N/A	-$38.70 million	$0.06	15.88

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	7	2	1	2.40
Ceconomy	0	0	0	1	4.00

Reynolds Consumer Products currently has a consensus price target of $26.75, indicating a potential upside of 14.86%. Given Reynolds Consumer Products’ higher probable upside, research analysts clearly believe Reynolds Consumer Products is more favorable than Ceconomy.

Summary

Reynolds Consumer Products beats Ceconomy on 9 of the 13 factors compared between the two stocks.

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.

About Ceconomy

Ceconomy AG, together with its subsidiaries, engages in the consumer electronics retail business. It operates stores under the MediaMarkt and Saturn brands. The company offers professional assistance for the installation, connection, and troubleshooting of electronic devices at home under the Deutsche Technikberatung brand. It operates in Germany, Austria, Switzerland, and Hungary, as well as in Western, Southern, and Eastern Europe. Ceconomy AG is based in Düsseldorf, Germany.