Financial Analysis: B&G Foods (BGS) & Central Garden & Pet (CENT)
B&G Foods (NYSE: BGS) and Central Garden & Pet (NASDAQ:CENT) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
This table compares B&G Foods and Central Garden & Pet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Central Garden & Pet||3.49%||13.66%||6.13%|
B&G Foods pays an annual dividend of $1.86 per share and has a dividend yield of 6.0%. Central Garden & Pet does not pay a dividend. B&G Foods pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. B&G Foods has raised its dividend for 6 consecutive years.
Institutional and Insider Ownership
93.5% of B&G Foods shares are owned by institutional investors. Comparatively, 20.9% of Central Garden & Pet shares are owned by institutional investors. 2.2% of B&G Foods shares are owned by insiders. Comparatively, 11.6% of Central Garden & Pet shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
B&G Foods has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500.
This is a breakdown of current ratings for B&G Foods and Central Garden & Pet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Central Garden & Pet||0||1||3||0||2.75|
B&G Foods currently has a consensus target price of $42.81, suggesting a potential upside of 38.10%. Central Garden & Pet has a consensus target price of $38.33, suggesting a potential upside of 7.23%. Given B&G Foods’ higher possible upside, research analysts plainly believe B&G Foods is more favorable than Central Garden & Pet.
Valuation and Earnings
This table compares B&G Foods and Central Garden & Pet’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|B&G Foods||$1.52 billion||1.36||$317.39 million||$1.52||20.39|
|Central Garden & Pet||$1.98 billion||0.93||$202.40 million||$1.33||26.88|
B&G Foods has higher revenue, but lower earnings than Central Garden & Pet. B&G Foods is trading at a lower price-to-earnings ratio than Central Garden & Pet, indicating that it is currently the more affordable of the two stocks.
B&G Foods beats Central Garden & Pet on 10 of the 17 factors compared between the two stocks.
B&G Foods Company Profile
B&G Foods, Inc. (B&G Foods) is a holding company. The Company manufactures, sells and distributes a portfolio of shelf-stable and frozen foods across the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, puffed corn and rice snacks, nut clusters and other specialty products. Its products are marketed under various brands, including Ac’cent, B&G, B&M, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, New York Style, Old London, Original Tings, Ortega, Spice Islands, Spring Tree, Static Guard, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber and Wright’s.
Central Garden & Pet Company Profile
Central Garden & Pet Company is a marketer and producer of branded products and distributor of third party products in the pet and lawn and garden supplies industries in the United States. The Company operates in two segments: Pet segment and the Garden segment. It is a marketer and producer of pet supplies in the United States. In addition, its Pet segment operates sales and logistics networks in the industry strategically supporting its brands. Its principal pet supplies categories are dog and cat, aquatics, bird and small animal, wild bird feed and animal health products. The Company markets and produces various brands, including Pennington, The Rebels, AMDRO, Lilly Miller, Ironite, Sevin, and Over-N-Out. Its Garden segment operates a sales and logistics network that strategically supports its brands. The Company’s principal lawn and garden product lines include grass seed, wild bird feed and insect control products.
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