Analyzing Kid Brands (OTCMKTS:KIDBQ) & Central Garden & Pet (NASDAQ:CENT)

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

Earnings & Valuation

This table compares Kid Brands and Central Garden & Pet”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kid Brands	N/A	N/A	N/A	N/A	N/A
Central Garden & Pet	$3.13 billion	0.67	$162.84 million	$2.55	13.22

Central Garden & Pet has higher revenue and earnings than Kid Brands.

Analyst Ratings

This is a summary of current ratings for Kid Brands and Central Garden & Pet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kid Brands	0	0	0	0	0.00
Central Garden & Pet	1	3	1	1	2.33

Central Garden & Pet has a consensus price target of $42.50, indicating a potential upside of 26.08%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Kid Brands.

Institutional & Insider Ownership

16.1% of Central Garden & Pet shares are owned by institutional investors. 24.5% of Kid Brands shares are owned by insiders. Comparatively, 8.2% of Central Garden & Pet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kid Brands	N/A	N/A	N/A
Central Garden & Pet	5.20%	11.17%	4.82%

Summary

Central Garden & Pet beats Kid Brands on 9 of the 10 factors compared between the two stocks.

About Kid Brands

Kid Brands, Inc., together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and décor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art, as well as nursery appliances, diaper bags, and spa/bath products art under the Kids Line, Carter’s, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands. It also provides cribs, mattresses, and other nursery furniture under the BabiItalia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys and feeding products, bath and baby care items, and baby gear with features that address the various stages of an infant’s early years under the Sassy, Carter’s, Disney, Garanimals, and Kokopax brands. In addition, the company markets a range of products under various licenses, including Carter’s, Disney, Graco, and Serta. Kid Brands, Inc. sells its products through its own direct sales force, as well as through independent representatives and distributors to retail customers in the United States and internationally, including mass merchandisers, baby superstores, specialty stores, department stores, and boutiques. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is headquartered in Rutherford, New Jersey. On June 18, 2014, Kid Brands, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.

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.