Head-To-Head Analysis: Central Garden & Pet (CENT) vs. Ingredion (INGR)

Central Garden & Pet (NASDAQ: CENT) and Ingredion (NYSE:INGR) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Central Garden & Pet and Ingredion, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Central Garden & Pet 0 2 3 0 2.60
Ingredion 0 2 2 0 2.50

Central Garden & Pet presently has a consensus target price of $38.33, indicating a potential upside of 6.69%. Ingredion has a consensus target price of $141.67, indicating a potential upside of 13.74%. Given Ingredion’s higher probable upside, analysts clearly believe Ingredion is more favorable than Central Garden & Pet.

Earnings & Valuation

This table compares Central Garden & Pet and Ingredion’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Central Garden & Pet $1.98 billion 0.94 $202.40 million $1.33 27.02
Ingredion $5.80 billion 1.54 $1.05 billion $6.65 18.73

Ingredion has higher revenue and earnings than Central Garden & Pet. Ingredion 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.

Insider & Institutional Ownership

20.2% of Central Garden & Pet shares are held by institutional investors. Comparatively, 84.3% of Ingredion shares are held by institutional investors. 11.6% of Central Garden & Pet shares are held by insiders. Comparatively, 1.9% of Ingredion shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Ingredion pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Central Garden & Pet does not pay a dividend. Ingredion pays out 30.1% of its earnings in the form of a dividend. Central Garden & Pet has raised its dividend for 4 consecutive years.

Risk & Volatility

Central Garden & Pet has a beta of 0.1, meaning that its stock price is 90% less volatile than the S&P 500. Comparatively, Ingredion has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Profitability

This table compares Central Garden & Pet and Ingredion’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%
Ingredion 8.35% 20.84% 9.53%

Summary

Ingredion beats Central Garden & Pet on 11 of the 17 factors compared between the two stocks.

About Central Garden & Pet

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.

About Ingredion

Ingredion Incorporated is an ingredients solutions provider. The Company manufactures and sells sweetener, starches, nutrition ingredients and biomaterial solutions derived from the wet milling and processing of corn and other starch-based materials to a range of industries, both domestically and internationally. It operates through four segments: North America, South America, Asia Pacific, and Europe, Middle East and Africa (EMEA). It turns corn, tapioca, potatoes, and other vegetables and fruits into ingredients and biomaterials for the food, beverage, paper and corrugating, brewing and other industries. Its product line includes animal feed products and edible corn oil. Its sweetener products include glucose syrups, high maltose syrup, high fructose corn syrup (HFCS), caramel color, dextrose, polyols, maltodextrins and glucose and syrup solids. Its starch-based products include both food-grade and industrial starches, and biomaterials. It also offers specialty ingredients.

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