Contrasting Central Garden & Pet (NASDAQ:CENT) and Real Brands (OTCMKTS:RLBD)

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

Volatility & Risk

Central Garden & Pet has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Real Brands has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Valuation and Earnings

This table compares Central Garden & Pet and Real Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.20 billion	0.72	$107.98 million	$2.20	16.56
Real Brands	$60,000.00	0.00	-$1.33 million	N/A	N/A

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

Analyst Recommendations

This is a breakdown of recent recommendations for Central Garden & Pet and Real Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	2	1	0	2.33
Real Brands	0	0	0	0	0.00

Central Garden & Pet currently has a consensus target price of $40.00, suggesting a potential upside of 9.80%. Given Central Garden & Pet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Central Garden & Pet is more favorable than Real Brands.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	4.44%	10.77%	4.65%
Real Brands	N/A	N/A	N/A

Insider and Institutional Ownership

16.1% of Central Garden & Pet shares are held by institutional investors. 8.2% of Central Garden & Pet shares are held by insiders. Comparatively, 40.2% of Real Brands shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Central Garden & Pet beats Real Brands on 9 of the 11 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 Real Brands

Real Brands, Inc. operates in the hemp-derived cannabinol (CBD) market. It engages in the extraction of CBD oil/isolate; wholesale of CBD oils and isolate; and production and sale of hemp-derived CBD products, celebrity brands, and white label products. The company was founded in 2011 and is headquartered in North Providence, Rhode Island.