Financial Analysis: Central Garden & Pet (NASDAQ:CENTA) & Insynergy Products (OTCMKTS:STCB)

Insynergy Products (OTCMKTS:STCB) and Central Garden & Pet (NASDAQ:CENTA) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Insynergy Products and Central Garden & Pet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Insynergy Products	0	0	0	0	0.00
Central Garden & Pet	1	3	2	1	2.43

Central Garden & Pet has a consensus target price of $40.75, suggesting a potential upside of 18.94%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Insynergy Products.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Insynergy Products	7.34%	10.64%	5.66%
Central Garden & Pet	5.04%	10.99%	4.75%

Volatility & Risk

Insynergy Products has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Institutional & Insider Ownership

50.8% of Central Garden & Pet shares are owned by institutional investors. 34.8% of Insynergy Products shares are owned by company insiders. Comparatively, 20.3% of Central Garden & Pet shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Insynergy Products and Central Garden & Pet”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Insynergy Products	$58.67 million	0.32	-$17.65 million	$0.01	2.41
Central Garden & Pet	$3.13 billion	0.68	$162.84 million	$2.45	13.98

Central Garden & Pet has higher revenue and earnings than Insynergy Products. Insynergy Products 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.

Summary

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

About Insynergy Products

Starco Brands, Inc. markets consumer products through retail and online in the United States. It offers products in various categories, including household cleaning, DIY/Hardware, paints, coatings and adhesives, household, hair care, disinfectants, automotive, motorcycle, arts and crafts, personal care cosmetics, personal care FDA, sun care, food, cooking oils, beverages, and spirits and wine under the Winona, Whipshots, Skylar, Soylent, and Art of Sport brands. The company was formerly known as Insynergy Products, Inc. and changed its name to Starco Brands, Inc. in September 2017. Starco Brands, Inc. was incorporated in 2010 and is based in Santa Monica, California.

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.