Critical Contrast: Traeger (NYSE:COOK) & Kid Brands (OTCMKTS:KIDBQ)

Traeger (NYSE:COOK) and Kid Brands (OTCMKTS:KIDBQ) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares Traeger and Kid Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-18.01%	-11.31%	-3.68%
Kid Brands	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Traeger and Kid Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	2	5	1	0	1.88
Kid Brands	0	0	0	0	0.00

Traeger currently has a consensus target price of $2.09, indicating a potential upside of 159.13%. Given Traeger’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Traeger is more favorable than Kid Brands.

Valuation & Earnings

This table compares Traeger and Kid Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$604.07 million	0.18	-$34.01 million	($0.79)	-1.02
Kid Brands	N/A	N/A	N/A	N/A	N/A

Kid Brands has lower revenue, but higher earnings than Traeger.

Institutional & Insider Ownership

46.8% of Traeger shares are owned by institutional investors. 14.7% of Traeger shares are owned by company insiders. Comparatively, 24.5% of Kid Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Traeger beats Kid Brands on 5 of the 9 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 Kid Brands

Kid Brands, Inc., together with its subsidiaries, designs, imports, markets, and distributes infant and juvenile consumer products. The company offers infant bedding and related nursery accessories and décor, such as blankets, rugs, mobiles, nightlights, hampers, lamps, and wall art, as well as nursery appliances, diaper bags, and spa/bath products art under the Kids Line, Carter’s, Disney, CoCaLo Baby, CoCaLo Couture, and CoCaLo Naturals brands. It also provides cribs, mattresses, and other nursery furniture under the BabiItalia, Europa Baby, Bonavita, Graco, and Serta brands; and developmental toys and feeding products, bath and baby care items, and baby gear with features that address the various stages of an infant’s early years under the Sassy, Carter’s, Disney, Garanimals, and Kokopax brands. In addition, the company markets a range of products under various licenses, including Carter’s, Disney, Graco, and Serta. Kid Brands, Inc. sells its products through its own direct sales force, as well as through independent representatives and distributors to retail customers in the United States and internationally, including mass merchandisers, baby superstores, specialty stores, department stores, and boutiques. The company was formerly known as Russ Berrie and Company, Inc. and changed its name to Kid Brands, Inc. in September 2009. Kid Brands, Inc. was founded in 1963 and is headquartered in Rutherford, New Jersey. On June 18, 2014, Kid Brands, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.