Central Garden & Pet (NASDAQ: CENT) and Kraft Heinz Foods (NYSE:HNZ) are both mid-cap non-cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.
Insider & Institutional Ownership
20.1% of Central Garden & Pet shares are held by institutional investors. 11.6% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Central Garden & Pet and Kraft Heinz Foods’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Central Garden & Pet||$2.05 billion||1.04||$78.82 million||$1.52||27.09|
|Kraft Heinz Foods||N/A||N/A||N/A||$3.26||22.24|
Central Garden & Pet has higher revenue and earnings than Kraft Heinz Foods. Kraft Heinz Foods 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.
This table compares Central Garden & Pet and Kraft Heinz Foods’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Central Garden & Pet||3.84%||12.81%||5.84%|
|Kraft Heinz Foods||N/A||N/A||N/A|
This is a summary of recent ratings and price targets for Central Garden & Pet and Kraft Heinz Foods, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Central Garden & Pet||0||3||2||0||2.40|
|Kraft Heinz Foods||0||2||1||0||2.33|
Central Garden & Pet presently has a consensus price target of $38.33, indicating a potential downside of 6.91%. Kraft Heinz Foods has a consensus price target of $17.65, indicating a potential downside of 75.65%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Central Garden & Pet is more favorable than Kraft Heinz Foods.
Central Garden & Pet beats Kraft Heinz Foods on 9 of the 10 factors compared between the two stocks.
About Central Garden & Pet
Central Garden & Pet Company is a marketer and producer of branded products and distributor of third party products in the pet and lawn and garden supplies industries in the United States. The Company operates in two segments: Pet segment and the Garden segment. It is a marketer and producer of pet supplies in the United States. In addition, its Pet segment operates sales and logistics networks in the industry strategically supporting its brands. Its principal pet supplies categories are dog and cat, aquatics, bird and small animal, wild bird feed and animal health products. The Company markets and produces various brands, including Pennington, The Rebels, AMDRO, Lilly Miller, Ironite, Sevin, and Over-N-Out. Its Garden segment operates a sales and logistics network that strategically supports its brands. The Company’s principal lawn and garden product lines include grass seed, wild bird feed and insect control products.
About Kraft Heinz Foods
H. J. Heinz Company, together with its subsidiaries, is engaged in manufacturing and marketing a range of food products throughout the world. The Company’s principal products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. The Company’s products are manufactured and packaged to provide wholesome foods for consumers, as well as foodservice and institutional customers. The Company manufactures and contracts for the manufacture of its products from a variety of raw food materials. The Company operates in five segments: North American Consumer Products, Europe, Asia/Pacific, U.S. Foodservice and Rest of World. The Company owns or leases office space, warehouses, distribution centers and research and other facilities throughout the world.
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