Contrasting Central Garden & Pet (NASDAQ:CENT) and Clorox (NYSE:CLX)
by Kim Johansen · The Markets DailyCentral Garden & Pet (NASDAQ:CENT – Get Free Report) and Clorox (NYSE:CLX – Get Free Report) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Insider and Institutional Ownership
16.1% of Central Garden & Pet shares are owned by institutional investors. Comparatively, 78.5% of Clorox shares are owned by institutional investors. 8.2% of Central Garden & Pet shares are owned by insiders. Comparatively, 0.5% of Clorox shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Central Garden & Pet and Clorox, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Central Garden & Pet | 0 | 2 | 1 | 1 | 2.75 |
| Clorox | 4 | 12 | 0 | 0 | 1.75 |
Central Garden & Pet currently has a consensus price target of $54.00, suggesting a potential upside of 28.45%. Clorox has a consensus price target of $94.64, suggesting a potential upside of 8.90%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, research analysts plainly believe Central Garden & Pet is more favorable than Clorox.
Risk & Volatility
Central Garden & Pet has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Clorox has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.
Valuation and Earnings
This table compares Central Garden & Pet and Clorox”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Central Garden & Pet | $3.13 billion | 0.84 | $162.84 million | $2.68 | 15.69 |
| Clorox | $6.72 billion | 1.56 | $587.00 million | $4.82 | 18.03 |
Clorox has higher revenue and earnings than Central Garden & Pet. Central Garden & Pet is trading at a lower price-to-earnings ratio than Clorox, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Central Garden & Pet and Clorox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Central Garden & Pet | 5.39% | 11.13% | 4.93% |
| Clorox | 8.74% | 522.23% | 10.64% |
Summary
Clorox beats Central Garden & Pet on 9 of the 15 factors compared between the two stocks.
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.
About Clorox
The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. It sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The Clorox Company was founded in 1913 and is headquartered in Oakland, California.