Head to Head Survey: Central Garden & Pet (NASDAQ:CENTA) versus Mandom (OTCMKTS:MDOMF)

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

Volatility and Risk

Mandom has a beta of 2.58, suggesting that its stock price is 158% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Profitability

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

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

Insider and Institutional Ownership

50.8% of Central Garden & Pet shares are held by institutional investors. 20.3% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mandom	$752.29 million	1.03	$40.89 million	$0.69	23.19
Central Garden & Pet	$3.13 billion	0.78	$162.84 million	$2.68	14.57

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Mandom and Central Garden & Pet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mandom	0	0	0	0	0.00
Central Garden & Pet	1	1	3	1	2.67

Central Garden & Pet has a consensus price target of $46.67, suggesting a potential upside of 19.47%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Mandom.

Summary

Central Garden & Pet beats Mandom on 12 of the 15 factors compared between the two stocks.

About Mandom

Mandom Corporation engages in the manufacture and sale of cosmetics, perfumes, and quasi-drugs in Japan, Indonesia, and internationally. The company offers a range of products, including men's everyday grooming products, as well as general fashion items, such as hair styling, skin care, and body care products; and hair coloring, scalp care, and face care products under the Gatsby and Lúcido brands. It also provides a range of women's grooming and fashion items, such as hair styling and body care products comprises make-up and skin care items, as well as hair coloring and treatment products under the Bifesta, Barrier Repair, Pixy, Lúcido-L, and Pucelle brands. In addition, the company engages in the insurance agency business. The company was formerly known as Tancho Corporation and changed its name to Mandom Corporation in April 1971. Mandom Corporation was incorporated in 1927 and is headquartered in Osaka, Japan.

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.