Financial Analysis: Reynolds Consumer Products (NASDAQ:REYN) vs. Chanson International (NASDAQ:CHSN)

Reynolds Consumer Products (NASDAQ:REYN) and Chanson International (NASDAQ:CHSN) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Earnings and Valuation

This table compares Reynolds Consumer Products and Chanson International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.70 billion	1.35	$352.00 million	$1.49	15.97
Chanson International	$18.23 million	0.06	$760,000.00	N/A	N/A

Reynolds Consumer Products has higher revenue and earnings than Chanson International.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Reynolds Consumer Products and Chanson International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	6	2	0	2.25
Chanson International	0	0	0	0	0.00

Reynolds Consumer Products currently has a consensus price target of $26.75, suggesting a potential upside of 12.44%. Given Reynolds Consumer Products’ stronger consensus rating and higher possible upside, equities analysts plainly believe Reynolds Consumer Products is more favorable than Chanson International.

Institutional and Insider Ownership

26.8% of Reynolds Consumer Products shares are owned by institutional investors. Comparatively, 2.8% of Chanson International shares are owned by institutional investors. 0.2% of Reynolds Consumer Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Reynolds Consumer Products has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, Chanson International has a beta of -2.82, meaning that its stock price is 382% less volatile than the S&P 500.

Profitability

This table compares Reynolds Consumer Products and Chanson International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reynolds Consumer Products	8.44%	16.00%	6.98%
Chanson International	N/A	N/A	N/A

Summary

Reynolds Consumer Products beats Chanson International on 12 of the 12 factors compared between the two stocks.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.

About Chanson International

Chanson International Holding manufactures and sells a range of bakery products, seasonal products, and beverage products for individual and corporate customers. It offers packaged bakery products, such as cakes, bread, sweets, and snacks; birthday cakes; made-in-store pastries; mooncakes and zongzi products; and other products, including sandwiches, salads, toasts, croissants, soups, and desserts, as well as beverages and juice products. The company sells its products through a chain of bakeries, as well as digital platforms and third-party online food ordering platforms. It also offers eat-in services in its stores. The company sells its bakery and other products under the George Chanson, Patisserie Chanson, and Chanson brand names. It operates in Xinjiang in the People's Republic of China; and New York City, the United States. The company was formerly known as formerly known as RON Holding Limited and changed its name to Chanson International Holding in December 2020. The company was incorporated in 2019 and is headquartered in Urumqi, China. Chanson International Holding operates as a subsidiary of Danton Global Limited.