Traeger (NYSE:COOK) and Central Garden & Pet (NASDAQ:CENTA) Head-To-Head Analysis

Traeger (NYSE:COOK) and Central Garden & Pet (NASDAQ:CENTA) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility and Risk

Traeger has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Earnings and Valuation

This table compares Traeger 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
Traeger	$559.52 million	0.33	-$115.18 million	($41.92)	-1.60
Central Garden & Pet	$3.13 billion	0.68	$162.84 million	$2.75	12.41

Central Garden & Pet has higher revenue and earnings than Traeger. Traeger 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Central Garden & Pet	1	2	2	1	2.50

Traeger presently has a consensus target price of $50.08, suggesting a potential downside of 25.54%. Central Garden & Pet has a consensus target price of $44.00, suggesting a potential upside of 28.92%. Given Central Garden & Pet’s stronger consensus rating and higher possible upside, analysts clearly believe Central Garden & Pet is more favorable than Traeger.

Insider and Institutional Ownership

46.8% of Traeger shares are owned by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are owned by institutional investors. 16.1% of Traeger shares are owned by company insiders. Comparatively, 20.3% of Central Garden & Pet shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Traeger	-21.84%	-13.76%	-3.95%
Central Garden & Pet	5.42%	11.55%	5.04%

Summary

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

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.

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.