Reynolds Consumer Products (NASDAQ:REYN – Get Free Report) and Alto Ingredients (NASDAQ:ALTO – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Insider & Institutional Ownership
26.8% of Reynolds Consumer Products shares are owned by institutional investors. Comparatively, 42.4% of Alto Ingredients shares are owned by institutional investors. 0.2% of Reynolds Consumer Products shares are owned by insiders. Comparatively, 5.3% of Alto Ingredients shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for Reynolds Consumer Products and Alto Ingredients, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reynolds Consumer Products | 1 | 7 | 1 | 0 | 2.00 |
| Alto Ingredients | 1 | 1 | 0 | 0 | 1.50 |
Profitability
This table compares Reynolds Consumer Products and Alto Ingredients’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reynolds Consumer Products | 8.09% | 15.86% | 7.07% |
| Alto Ingredients | 1.45% | 3.10% | 1.69% |
Valuation & Earnings
This table compares Reynolds Consumer Products and Alto Ingredients”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reynolds Consumer Products | $3.72 billion | 1.28 | $301.00 million | $1.44 | 15.76 |
| Alto Ingredients | $922.31 million | 0.38 | -$58.98 million | $0.16 | 28.06 |
Reynolds Consumer Products has higher revenue and earnings than Alto Ingredients. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Alto Ingredients, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Reynolds Consumer Products has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Alto Ingredients has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
Summary
Reynolds Consumer Products beats Alto Ingredients on 10 of the 14 factors compared between the two stocks.
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.
About Alto Ingredients
Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients include dried yeast, corn protein meal, corn protein feed, distiller's grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast for human consumption. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. It operates alcohol production facilities. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.
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