Head to Head Survey: Central Garden & Pet (NASDAQ:CENTA) and Church & Dwight (NYSE:CHD)

Central Garden & Pet (NASDAQ:CENTA) and Church & Dwight (NYSE:CHD) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

Central Garden & Pet has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Church & Dwight has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	5.39%	11.13%	4.93%
Church & Dwight	11.96%	20.10%	9.31%

Analyst Recommendations

This is a summary of current recommendations and price targets for Central Garden & Pet and Church & Dwight, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	1	1	3	1	2.67
Church & Dwight	1	8	9	0	2.44

Central Garden & Pet currently has a consensus price target of $46.67, indicating a potential upside of 35.90%. Church & Dwight has a consensus price target of $104.41, indicating a potential upside of 9.66%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Church & Dwight.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.13 billion	0.69	$162.84 million	$2.68	12.81
Church & Dwight	$6.20 billion	3.64	$736.80 million	$3.11	30.61

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

Institutional & Insider Ownership

50.8% of Central Garden & Pet shares are held by institutional investors. Comparatively, 86.6% of Church & Dwight shares are held by institutional investors. 20.3% of Central Garden & Pet shares are held by company insiders. Comparatively, 2.0% of Church & Dwight shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Church & Dwight beats Central Garden & Pet on 10 of the 15 factors compared between the two stocks.

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.

About Church & Dwight

Church & Dwight Co., Inc. engages in the development, manufacture, and marketing of household, personal care, and specialty products. It operates through the following segments: Consumer Domestic, Consumer International, Specialty Products Division (SPD), and Corporate. The Consumer Domestic segment offers household products, such as laundry detergents, fabric softener sheets, cat litter, household cleaning products, and personal care products including antiperspirants, oral care products, depilatories, reproductive health products, oral analgesics, nasal saline moisturizers, and dietary supplements. The Consumer International segment is involved in the personal care, household and over-the-counter products in international subsidiary markets, including Australia, Canada, France, Germany, Japan, Mexico, China, and the United Kingdom. The SPD segment consists of sales to businesses and participates in three product areas namely, animal nutrition, specialty chemicals, and commercial and professional. The Corporate segment includes equity in earnings of affiliates. The company was founded by Dwight John and Austin Church in 1846 and is headquartered in Ewing, NJ.