Comparing Central Garden & Pet (NASDAQ:CENT) and Interparfums (NASDAQ:IPAR)

Interparfums (NASDAQ:IPAR) and Central Garden & Pet (NASDAQ:CENT) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 16.1% of Central Garden & Pet shares are held by institutional investors. 43.7% of Interparfums shares are held by company insiders. Comparatively, 8.2% 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 company is poised for long-term growth.

Earnings and Valuation

This table compares Interparfums and Central Garden & Pet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.49 billion	1.97	$168.39 million	$5.24	17.42
Central Garden & Pet	$3.13 billion	0.76	$162.84 million	$2.45	15.53

Interparfums has higher earnings, but lower revenue than Central Garden & Pet. Central Garden & Pet is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Interparfums has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.31%	15.76%	10.95%
Central Garden & Pet	5.04%	10.99%	4.75%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Interparfums and Central Garden & Pet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	3	3	1	2.71
Central Garden & Pet	0	3	1	1	2.60

Interparfums currently has a consensus price target of $105.20, indicating a potential upside of 15.25%. Central Garden & Pet has a consensus price target of $42.50, indicating a potential upside of 11.67%. Given Interparfums’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Interparfums is more favorable than Central Garden & Pet.

Summary

Interparfums beats Central Garden & Pet on 13 of the 14 factors compared between the two stocks.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

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.