Analyzing Central Garden & Pet (NASDAQ:CENTA) & Energizer (NYSE:ENR)

Energizer (NYSE:ENR) and Central Garden & Pet (NASDAQ:CENTA) are both consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Energizer and Central Garden & Pet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energizer	1	6	0	0	1.86
Central Garden & Pet	1	1	3	1	2.67

Energizer currently has a consensus price target of $21.83, indicating a potential upside of 2.45%. Central Garden & Pet has a consensus price target of $46.67, indicating a potential upside of 33.33%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts clearly believe Central Garden & Pet is more favorable than Energizer.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Energizer	2.73%	122.63%	4.72%
Central Garden & Pet	5.39%	11.13%	4.93%

Volatility and Risk

Energizer has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Valuation & Earnings

This table compares Energizer 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
Energizer	$2.95 billion	0.49	$239.00 million	$1.18	18.06
Central Garden & Pet	$3.13 billion	0.70	$162.84 million	$2.68	13.06

Energizer has higher earnings, but lower revenue than Central Garden & Pet. Central Garden & Pet is trading at a lower price-to-earnings ratio than Energizer, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

93.7% of Energizer shares are owned by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are owned by institutional investors. 1.6% of Energizer 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Central Garden & Pet beats Energizer on 10 of the 15 factors compared between the two stocks.

About Energizer

Energizer Holdings, Inc., together with its subsidiaries, manufactures, markets, and distributes household batteries, specialty batteries, and lighting products worldwide. It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide batteries under the Energizer, Eveready, and Rayovac brands; primary, rechargeable, specialty, and hearing aid batteries; and handheld, headlights, lanterns, and area lights, as well as flashlights under the Hard Case, Dolphin, and WeatherReady brands. The company licenses the Energizer, Rayovac, and Eveready brands to companies developing consumer solutions in solar, automotive batteries, portable power for critical devices, generators, power tools, household light bulbs, and other lighting products. In addition, it designs and markets automotive fragrance and appearance products, including protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners, and washes to clean, shine, refresh, and protect interior and exterior automobile surfaces under the brand names of Armor All, Nu Finish, Refresh Your Car!, LEXOL, Eagle One, California Scents, Driven, Bahama & Co, Carnu, Grand Prix, Kit, and Tempo; STP branded fuel and oil additives, functional fluids, and other performance chemical products; and do-it-yourself automotive air conditioning recharge products under the A/C PRO brand name, as well as other refrigerant and recharge kits, sealants, and accessories. The company sells its products through direct sales force, distributors, and wholesalers; and various retail and business-to-business channels, including mass merchandisers, club, electronics, food, home improvement, dollar store, auto, drug, hardware, e-commerce, convenience, sporting goods, hobby/craft, office, industrial, medical, and catalog. Energizer Holdings, Inc. was incorporated in 2015 and is headquartered in Saint Louis, Missouri.

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.