Analyzing Central Garden & Pet (NASDAQ:CENT) and Traeger (NYSE:COOK)

Central Garden & Pet (NASDAQ:CENT) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Earnings & Valuation

This table compares Central Garden & Pet and Traeger”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.13 billion	0.79	$162.84 million	$2.45	16.12
Traeger	$604.07 million	0.20	-$34.01 million	($0.79)	-1.09

Central Garden & Pet has higher revenue and earnings than Traeger. Traeger is trading at a lower price-to-earnings ratio than Central Garden & Pet, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Central Garden & Pet has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Traeger has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Institutional and Insider Ownership

16.1% of Central Garden & Pet shares are owned by institutional investors. Comparatively, 46.8% of Traeger shares are owned by institutional investors. 8.2% of Central Garden & Pet shares are owned by insiders. Comparatively, 16.1% of Traeger shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Central Garden & Pet and Traeger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	3	1	1	2.60
Traeger	2	6	1	0	1.89

Central Garden & Pet currently has a consensus target price of $42.50, indicating a potential upside of 7.64%. Traeger has a consensus target price of $2.09, indicating a potential upside of 142.89%. Given Traeger’s higher possible upside, analysts plainly believe Traeger is more favorable than Central Garden & Pet.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	5.04%	10.99%	4.75%
Traeger	-18.01%	-11.31%	-3.68%

Summary

Central Garden & Pet beats Traeger on 10 of the 14 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 Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.