Traeger (NYSE:COOK) vs. Central Garden & Pet (NASDAQ:CENTA) Critical Comparison

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

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%

Earnings & Valuation

This table compares Traeger and Central Garden & Pet”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Traeger	$559.52 million	0.31	-$115.18 million	($41.92)	-1.48
Central Garden & Pet	$3.13 billion	0.70	$162.84 million	$2.75	12.66

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.

Volatility and Risk

Traeger has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Insider & Institutional Ownership

46.8% of Traeger shares are held by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are held by institutional investors. 16.2% of Traeger shares are held by insiders. Comparatively, 20.3% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Traeger and Central Garden & Pet, as provided by MarketBeat.

	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 currently has a consensus price target of $50.08, suggesting a potential downside of 19.45%. Central Garden & Pet has a consensus price target of $44.00, suggesting a potential upside of 26.36%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts clearly believe Central Garden & Pet is more favorable than Traeger.

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.