Financial Analysis: Central Garden & Pet (NASDAQ:CENTA) vs. Barnes & Noble Education (NYSE:BNED)

Barnes & Noble Education (NYSE:BNEDGet Free Report) and Central Garden & Pet (NASDAQ:CENTAGet Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Insider & Institutional Ownership

38.5% of Barnes & Noble Education shares are held by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are held by institutional investors. 1.2% of Barnes & Noble Education shares are held by company insiders. Comparatively, 20.3% of Central Garden & Pet shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnes & Noble Education 1 0 0 0 1.00
Central Garden & Pet 1 3 2 1 2.43

Central Garden & Pet has a consensus target price of $41.75, indicating a potential upside of 20.14%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Barnes & Noble Education.

Earnings and Valuation

This table compares Barnes & Noble Education and Central Garden & Pet”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barnes & Noble Education $1.61 billion 0.23 -$65.82 million ($0.32) -33.91
Central Garden & Pet $3.13 billion 0.69 $162.84 million $2.45 14.18

Central Garden & Pet has higher revenue and earnings than Barnes & Noble Education. Barnes & Noble Education 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.

Profitability

This table compares Barnes & Noble Education and Central Garden & Pet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnes & Noble Education -0.57% -20.37% -5.70%
Central Garden & Pet 5.04% 10.99% 4.75%

Risk and Volatility

Barnes & Noble Education has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Summary

Central Garden & Pet beats Barnes & Noble Education on 14 of the 15 factors compared between the two stocks.

About Barnes & Noble Education

(Get Free Report)

Barnes and Noble Education, Inc. engages in the management and operation of bookstore chains in universities. It operates through the Retail and Wholesale segments. The Retail segment operates college, university, and K-12 school bookstores, physical bookstores, and virtual bookstores. The Wholesale segment sells and distributes new and used textbooks to physical bookstores. The company was founded by Leonard S, Riggio in 1965 and is headquartered in Basking Ridge, NJ.

About Central Garden & Pet

(Get Free Report)

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.

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