Central Garden & Pet (CENT) versus Bunge Limited (BG) Critical Review
Central Garden & Pet (NASDAQ: CENT) and Bunge Limited (NYSE:BG) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.
Bunge Limited pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Central Garden & Pet does not pay a dividend. Bunge Limited pays out 49.0% of its earnings in the form of a dividend. Central Garden & Pet has raised its dividend for 15 consecutive years.
This is a breakdown of current ratings and recommmendations for Central Garden & Pet and Bunge Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Central Garden & Pet||0||1||3||0||2.75|
Central Garden & Pet presently has a consensus target price of $38.33, indicating a potential upside of 13.04%. Bunge Limited has a consensus target price of $84.83, indicating a potential upside of 9.94%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than Bunge Limited.
This table compares Central Garden & Pet and Bunge Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Central Garden & Pet||3.49%||13.66%||6.13%|
Volatility & Risk
Central Garden & Pet has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Bunge Limited has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Valuation & Earnings
This table compares Central Garden & Pet and Bunge Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Central Garden & Pet||$1.98 billion||0.89||$202.40 million||$1.33||25.50|
|Bunge Limited||$45.99 billion||0.24||$1.29 billion||$3.43||22.50|
Bunge Limited has higher revenue and earnings than Central Garden & Pet. Bunge Limited 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.
Insider & Institutional Ownership
20.9% of Central Garden & Pet shares are owned by institutional investors. Comparatively, 80.4% of Bunge Limited shares are owned by institutional investors. 11.6% of Central Garden & Pet shares are owned by company insiders. Comparatively, 1.3% of Bunge Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Central Garden & Pet beats Bunge Limited on 10 of the 17 factors compared between the two stocks.
Central Garden & Pet Company Profile
Central Garden & Pet Company is a marketer and producer of branded products and distributor of third party products in the pet and lawn and garden supplies industries in the United States. The Company operates in two segments: Pet segment and the Garden segment. It is a marketer and producer of pet supplies in the United States. In addition, its Pet segment operates sales and logistics networks in the industry strategically supporting its brands. Its principal pet supplies categories are dog and cat, aquatics, bird and small animal, wild bird feed and animal health products. The Company markets and produces various brands, including Pennington, The Rebels, AMDRO, Lilly Miller, Ironite, Sevin, and Over-N-Out. Its Garden segment operates a sales and logistics network that strategically supports its brands. The Company’s principal lawn and garden product lines include grass seed, wild bird feed and insect control products.
Bunge Limited Company Profile
Bunge Limited is an agribusiness and food company with integrated operations that stretch from the farm field to consumer foods. The Company operates through five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. Its Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Its edible oil products include packaged and bulk oils, shortenings, margarines, mayonnaise and other products derived from the vegetable oil refining process. Its milling products segment includes the production and sale of a range of wheat flours and bakery mixes. The Company is a producer and exporter of sugar. Through the Company’s operations in Argentina, it produces, blends and distributes a range of nitrogen, phosphate and potassium (NPK) fertilizers, including phosphate-based liquid and solid nitrogen fertilizers.
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