Critical Survey: Reynolds Consumer Products (NASDAQ:REYN) vs. Soupman (OTCMKTS:SOUPQ)

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

Analyst Recommendations

This is a summary of current recommendations for Reynolds Consumer Products and Soupman, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	7	2	0	2.22
Soupman	0	0	0	0	0.00

Reynolds Consumer Products currently has a consensus price target of $26.75, indicating a potential upside of 8.43%. Given Reynolds Consumer Products’ stronger consensus rating and higher possible upside, equities analysts plainly believe Reynolds Consumer Products is more favorable than Soupman.

Profitability

This table compares Reynolds Consumer Products and Soupman’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%
Soupman	N/A	N/A	N/A

Valuation & Earnings

This table compares Reynolds Consumer Products and Soupman”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.70 billion	1.40	$352.00 million	$1.49	16.56
Soupman	N/A	N/A	N/A	N/A	N/A

Reynolds Consumer Products has higher revenue and earnings than Soupman.

Insider and Institutional Ownership

26.8% of Reynolds Consumer Products shares are held by institutional investors. 0.2% of Reynolds Consumer Products shares are held by company insiders. Comparatively, 12.1% of Soupman shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Reynolds Consumer Products beats Soupman on 8 of the 9 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 Soupman

Soupman, Inc., together with its subsidiaries, manufactures and sells soups in the United States. It markets and sells its products to grocery chains, school systems, and franchisees under The Original Soupman brand name. The company also franchises Original Soupman restaurants and mobile unit; and other high-traffic locations, such as casinos, airports, theme parks, and other tourist locations. It has 9 franchise locations, including co-branded locations. The company was formerly known as Passport Arts, Inc. and changed its name to Soupman, Inc. in January 2011. Soupman, Inc. was founded in 1984 and is based in Staten Island, New York.