Reviewing Reynolds Consumer Products (NASDAQ:REYN) & Central Garden & Pet (NASDAQ:CENT)

Central Garden & Pet (NASDAQ:CENT) and Reynolds Consumer Products (NASDAQ:REYN) are both mid-cap consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Central Garden & Pet and Reynolds Consumer Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	2	1	1	2.75
Reynolds Consumer Products	0	7	1	0	2.12

Central Garden & Pet currently has a consensus target price of $54.00, indicating a potential upside of 14.72%. Reynolds Consumer Products has a consensus target price of $25.20, indicating a potential upside of 1.61%. Given Central Garden & Pet’s stronger consensus rating and higher possible upside, research analysts clearly believe Central Garden & Pet is more favorable than Reynolds Consumer Products.

Profitability

This table compares Central Garden & Pet and Reynolds Consumer Products’ 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%
Reynolds Consumer Products	8.53%	15.55%	7.10%

Risk and Volatility

Central Garden & Pet has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

16.1% of Central Garden & Pet shares are owned by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are owned by institutional investors. 8.2% of Central Garden & Pet shares are owned by company insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Central Garden & Pet and Reynolds Consumer Products”s top-line 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	0.94	$162.84 million	$2.68	17.56
Reynolds Consumer Products	$3.80 billion	1.38	$301.00 million	$1.53	16.21

Reynolds Consumer Products has higher revenue and earnings than Central Garden & Pet. Reynolds Consumer Products 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.

About Central Garden & Pet

Central Garden & Pet Company develops, manufactures and distributes products for the pet and lawn-and-garden markets. Founded in 1980, the company is headquartered in Walnut Creek, California, and serves customers primarily in North America. Its Pet segment offers products for dogs, cats, birds, fish, small animals and other pets. Its brands include Aqueon, Kaytee, Nylabone and K&H Pet Products, with offerings such as food, treats, toys, habitats and aquarium supplies. The Garden segment sells products for lawn care, gardening and outdoor living, including grass seed, fertilizer, pest-control products, live plants and garden accessories.

About Reynolds Consumer Products

Reynolds Consumer Products manufactures and markets household products used for food preparation and storage, waste management, and foodservice. Its portfolio includes aluminum foil, parchment paper, baking products, food-storage bags and containers, trash bags, and disposable tableware. The company sells products under brands including Reynolds, Hefty, and Presto, as well as through private-label offerings. Its products are primarily sold in the United States and Canada through retailers and other distribution channels.