Financial Analysis: Central Garden & Pet (NASDAQ:CENTA) vs. Reckitt Benckiser Group (OTCMKTS:RBGLY)

Reckitt Benckiser Group (OTCMKTS:RBGLY) and Central Garden & Pet (NASDAQ:CENTA) are both consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Institutional and Insider Ownership

0.1% of Reckitt Benckiser Group shares are owned by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are owned by institutional investors. 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.

Volatility and Risk

Reckitt Benckiser Group has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Reckitt Benckiser Group and Central Garden & Pet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reckitt Benckiser Group	1	2	3	2	2.75
Central Garden & Pet	1	1	3	1	2.67

Central Garden & Pet has a consensus target price of $46.67, suggesting a potential upside of 22.23%. Given Central Garden & Pet’s higher possible upside, analysts clearly believe Central Garden & Pet is more favorable than Reckitt Benckiser Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reckitt Benckiser Group	N/A	N/A	N/A
Central Garden & Pet	5.39%	11.13%	4.93%

Valuation and Earnings

This table compares Reckitt Benckiser Group and Central Garden & Pet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reckitt Benckiser Group	$18.73 billion	2.39	$4.20 billion	N/A	N/A
Central Garden & Pet	$3.13 billion	0.76	$162.84 million	$2.68	14.25

Reckitt Benckiser Group has higher revenue and earnings than Central Garden & Pet.

Summary

Central Garden & Pet beats Reckitt Benckiser Group on 7 of the 12 factors compared between the two stocks.

About Reckitt Benckiser Group

Reckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products worldwide. It offers acne treatment creams, facial washes, and cleansing pads; germ protection products; condoms; heartburn and indigestion solutions; joints health products; chest congestion, cough, and sinus remedies; brain health products; migraine-headaches and rheumatic pain products; sore throat medications; and hair removal products under the Airborne, Clearasil, Dettol, Durex, Gaviscon, Move Free, Neuriva, Nurofen, Mucinex, Strepsils, and Veet brands. The company also offers home fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfecting sprays wipes, laundry sanitisers, and others; sprays, baits, and plug-ins for pest control; stain removals; and fabric washing under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands. In addition, it provides nutritious complementary foods and milk formulas for infant and young children under the Enfamil and Nutramigen brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.

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.