Head-To-Head Analysis: Samsonite Group (OTCMKTS:SMSEY) & Central Garden & Pet (NASDAQ:CENT)

Samsonite Group (OTCMKTS:SMSEY) and Central Garden & Pet (NASDAQ:CENT) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Samsonite Group	8.46%	20.98%	6.19%
Central Garden & Pet	4.44%	10.77%	4.65%

Valuation & Earnings

This table compares Samsonite Group 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
Samsonite Group	$3.59 billion	0.84	$345.70 million	$1.04	10.46
Central Garden & Pet	$3.20 billion	0.63	$107.98 million	$2.20	14.60

Samsonite Group has higher revenue and earnings than Central Garden & Pet. Samsonite Group 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.

Institutional and Insider Ownership

16.1% of Central Garden & Pet shares are owned by institutional investors. 8.2% of Central Garden & Pet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Samsonite Group and Central Garden & Pet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Samsonite Group	0	1	0	1	3.00
Central Garden & Pet	0	4	1	0	2.20

Central Garden & Pet has a consensus price target of $40.00, indicating a potential upside of 24.53%. Given Central Garden & Pet’s higher possible upside, analysts clearly believe Central Garden & Pet is more favorable than Samsonite Group.

Risk & Volatility

Samsonite Group has a beta of 0.69, meaning that its stock price is 31% 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.

Summary

Samsonite Group beats Central Garden & Pet on 9 of the 15 factors compared between the two stocks.

About Samsonite Group

Samsonite International S.A. engages in the design, manufacture, sourcing, and distribution of travel luggage bags in North America, Asia, Europe, and Latin America. The company offers luggage, business, computer, outdoor, casual, and women's bags; and travel accessories and slim protective cases for personal electronic devices primarily under the Samsonite, Tumi, American Tourister, Speck, High Sierra, Gregory, Lipault, Kamiliant, Hartmann, and eBags brands, as well as other owned and licensed brand names. It sells its products through various wholesale distribution channels, as well as through company operated retail stores and e-commerce. The company was founded in 1910 and is based in Luxembourg, Luxembourg.

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.