Contrasting Central Garden & Pet (NASDAQ:CENTA) & Bon Natural Life (NASDAQ:BON)

Bon Natural Life (NASDAQ:BON) and Central Garden & Pet (NASDAQ:CENTA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Insider and Institutional Ownership

0.6% of Bon Natural Life shares are owned by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are owned by institutional investors. 26.5% of Bon Natural Life shares are owned by company insiders. Comparatively, 20.3% of Central Garden & Pet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Bon Natural Life has a beta of -0.25, meaning that its share price is 125% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bon Natural Life	$18.67 million	0.57	-$2.00 million	N/A	N/A
Central Garden & Pet	$3.13 billion	0.69	$162.84 million	$2.45	14.22

Central Garden & Pet has higher revenue and earnings than Bon Natural Life.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bon Natural Life	N/A	N/A	N/A
Central Garden & Pet	5.04%	10.99%	4.75%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bon Natural Life	1	0	0	0	1.00
Central Garden & Pet	1	3	2	1	2.43

Central Garden & Pet has a consensus price target of $41.75, suggesting a potential upside of 19.83%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Bon Natural Life.

Summary

Central Garden & Pet beats Bon Natural Life on 12 of the 13 factors compared between the two stocks.

About Bon Natural Life

Bon Natural Life Limited, together with its subsidiaries, engages in the research and development, manufacture, and sale of functional active ingredients extracted from natural herb plants in the People’s Republic of China and internationally. The company provides personal care ingredients, such as plant extracted fragrance compounds to perfume and fragrance manufacturers; natural health supplements comprising powder drinks and bioactive food ingredient products primarily used as food additives; and nutritional supplements. Its products are principally used by manufacturer customers in the functional food, personal care, cosmetic, and pharmaceutical industries. The company was founded in 2006 and is headquartered in Grand Cayman, the Cayman Islands.

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.