Critical Comparison: Central Garden & Pet (CENTA) & Its Competitors

Central Garden & Pet (NASDAQ:CENTA) is one of 38 publicly-traded companies in the “CONSM PD – MISC DIS” industry, but how does it contrast to its rivals? We will compare Central Garden & Pet to related businesses based on the strength of its risk, institutional ownership, dividends, valuation, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Central Garden & Pet and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Central Garden & Pet	$3.20 billion	$107.98 million	16.14
Central Garden & Pet Competitors	$3.16 billion	$148.21 million	0.22

Central Garden & Pet has higher revenue, but lower earnings than its rivals. Central Garden & Pet is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	3.90%	10.14%	4.40%
Central Garden & Pet Competitors	-0.19%	0.89%	0.61%

Institutional and Insider Ownership

50.8% of Central Garden & Pet shares are held by institutional investors. Comparatively, 45.0% of shares of all “CONSM PD – MISC DIS” companies are held by institutional investors. 20.3% of Central Garden & Pet shares are held by company insiders. Comparatively, 19.7% of shares of all “CONSM PD – MISC DIS” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	3	0	1	2.50
Central Garden & Pet Competitors	92	793	698	26	2.41

Central Garden & Pet presently has a consensus price target of $33.00, indicating a potential upside of 9.34%. As a group, “CONSM PD – MISC DIS” companies have a potential upside of 17.84%. Given Central Garden & Pet’s rivals higher probable upside, analysts plainly believe Central Garden & Pet has less favorable growth aspects than its rivals.

Risk and Volatility

Central Garden & Pet has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Central Garden & Pet’s rivals have a beta of -0.81, suggesting that their average stock price is 181% less volatile than the S&P 500.

Summary

Central Garden & Pet beats its rivals on 10 of the 13 factors compared.

Central Garden & Pet Company Profile

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.