Barnes & Noble Education (NYSE:BNED – Get Free Report) and Reynolds Consumer Products (NASDAQ:REYN – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Risk and Volatility
Barnes & Noble Education has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
Valuation and Earnings
This table compares Barnes & Noble Education and Reynolds Consumer Products”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Barnes & Noble Education | $1.61 billion | 0.21 | -$65.82 million | ($0.32) | -31.40 |
| Reynolds Consumer Products | $3.72 billion | 1.17 | $301.00 million | $1.44 | 14.38 |
Reynolds Consumer Products has higher revenue and earnings than Barnes & Noble Education. Barnes & Noble Education 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 Recommendations
This is a summary of recent ratings for Barnes & Noble Education and Reynolds Consumer Products, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Barnes & Noble Education | 1 | 0 | 0 | 0 | 1.00 |
| Reynolds Consumer Products | 0 | 7 | 0 | 0 | 2.00 |
Reynolds Consumer Products has a consensus price target of $23.60, indicating a potential upside of 14.01%. Given Reynolds Consumer Products’ stronger consensus rating and higher probable upside, analysts clearly believe Reynolds Consumer Products is more favorable than Barnes & Noble Education.
Insider & Institutional Ownership
38.5% of Barnes & Noble Education shares are owned by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are owned by institutional investors. 1.2% of Barnes & Noble Education 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, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Barnes & Noble Education and Reynolds Consumer Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Barnes & Noble Education | -0.57% | -20.37% | -5.70% |
| Reynolds Consumer Products | 8.09% | 15.86% | 7.07% |
Summary
Reynolds Consumer Products beats Barnes & Noble Education on 10 of the 13 factors compared between the two stocks.
About Barnes & Noble Education
Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the Retail and Wholesale segments. The Retail segment operates college, university, and K-12 school bookstores, physical bookstores, and virtual bookstores. The Wholesale segment sells and distributes new and used textbooks to physical bookstores. The company was founded by Leonard S, Riggio in 1965 and is headquartered in Basking Ridge, NJ.
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.
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