Critical Survey: Central Garden & Pet (CENTA) versus Its Peers

Central Garden & Pet (NASDAQ:CENTA) is one of 46 public companies in the “CONSM PD – MISC DIS” industry, but how does it weigh in compared to its peers? We will compare Central Garden & Pet to related businesses based on the strength of its institutional ownership, earnings, profitability, dividends, risk, valuation and analyst recommendations.

Insider and Institutional Ownership

50.8% of Central Garden & Pet shares are held by institutional investors. Comparatively, 40.3% of shares of all “CONSM PD – MISC DIS” companies are held by institutional investors. 20.3% of Central Garden & Pet shares are held by company insiders. Comparatively, 22.2% of shares of all “CONSM PD – MISC DIS” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Central Garden & Pet has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Central Garden & Pet’s peers have a beta of -0.51, meaning that their average share price is 151% less volatile than the S&P 500.

Valuation & Earnings

This table compares Central Garden & Pet and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Central Garden & Pet	$3.20 billion	$107.98 million	17.33
Central Garden & Pet Competitors	$2.74 billion	$103.51 million	3.19

Central Garden & Pet has higher revenue and earnings than its peers. Central Garden & Pet is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings for Central Garden & Pet and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	3	0	0	2.00
Central Garden & Pet Competitors	117	910	998	28	2.46

Central Garden & Pet currently has a consensus target price of $33.00, indicating a potential upside of 1.80%. As a group, “CONSM PD – MISC DIS” companies have a potential upside of 21.22%. Given Central Garden & Pet’s peers stronger consensus rating and higher probable upside, analysts clearly believe Central Garden & Pet has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	3.90%	10.14%	4.40%
Central Garden & Pet Competitors	0.03%	1.25%	0.50%

Summary

Central Garden & Pet beats its peers on 8 of the 13 factors compared.

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.