Central Garden & Pet (NASDAQ:CENTA) and Tiger Brands (OTCMKTS:TBLMY) Critical Contrast

Tiger Brands (OTCMKTS:TBLMY) and Central Garden & Pet (NASDAQ:CENTA) are both consumer defensive companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Tiger Brands and Central Garden & Pet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tiger Brands	0	0	0	0	N/A
Central Garden & Pet	0	1	2	0	2.67

Central Garden & Pet has a consensus price target of $45.00, suggesting a potential upside of 26.12%. Given Central Garden & Pet’s higher possible upside, analysts plainly believe Central Garden & Pet is more favorable than Tiger Brands.

Insider & Institutional Ownership

0.3% of Tiger Brands shares are held by institutional investors. Comparatively, 50.8% of Central Garden & Pet shares are held by institutional investors. 20.3% of Central Garden & Pet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tiger Brands	N/A	N/A	N/A
Central Garden & Pet	4.06%	10.32%	4.35%

Earnings and Valuation

This table compares Tiger Brands 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
Tiger Brands	N/A	N/A	N/A	$12.31	0.88
Central Garden & Pet	$3.31 billion	0.72	$125.64 million	$2.02	17.70

Central Garden & Pet has higher revenue and earnings than Tiger Brands. Tiger Brands 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.

Summary

Central Garden & Pet beats Tiger Brands on 9 of the 10 factors compared between the two stocks.

About Tiger Brands

Tiger Brands Limited engages in the manufacture and sale of fast-moving consumer goods in South Africa. The company offers baby care products under the Purity brand; bakeries under the Albany and Tinkies brands; and culinary fruit veg products under the Crosse & Blackwell, Benny, All Gold, Spray and Cook, Ice Cap, KOO, Colman's, Black Cat, Mrs H.S. Ball, and Hugo's brands. It provides home care products under the Airoma, Bio Classic, Bio Classic, Doom, Jeyes, and Peaceful Sleep brands; milling products under the Golden Cloud and Ace brands; rice pasta under the Fatti's and Moni's, Cresta, Tastic, and Aunt Caroline brands; and superfoods under the Ace, Jungle, King Korn, and Morvite brands. In addition, the company offers personal care products under the Dolly Varden, Kair, No Hair, Perfect Touch, Status, and Ingram's brands; and snacks, treats, and beverages under the Beacon, Maynards, Hall's, Sparkles, Allsorts, Oros, Jelly Tots, Toff-O-Luxe, fizzer, Fizz Pop, Smoothies, Rose's, Easter, and Energade brands. Further, it provides out of home solutions and product offerings in various pack formats to franchised restaurant groups, hotel groups, catering groups, airlines, and institutions; and product solutions for the establishment cleaning, pest control, and room air refreshing. It exports its products to approximately 55 countries worldwide. Tiger Brands Limited was founded in 1920 and is headquartered in Bryanston, South Africa.

About Central Garden & Pet

Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supplies markets in the United States. It operates through two segments: Pet and Garden. The Pet segment provides 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, and food and supplements; products for equine and livestock; animal and household health and insect control products; aquariums and terrariums, including fixtures and stands, water conditioners and supplements, water pumps and filters, and lighting systems and accessories; and live fish and small animals, as well as outdoor cushions. This segment sells its products under the Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, K&H Pet Products, Kaytee, Nylabone, and Zilla brands. Its Garden segment offers lawn and garden supplies products that include grass seed; vegetable; flower and herb packet seed; wild bird feed, bird feeders, bird houses, and other birding accessories; fertilizers; decorative products; live plants; and weed and grass, as well as other herbicides, insecticide, and pesticide products. This segment sells its lawn and garden supplies products under the Amdro, Ferry-Morse, Pennington, and Sevin brands. The company sells its products to independent distributors, big-box retailers, national and regional retail chains, e-commerce and online retailers, grocery stores, nurseries, and mass merchants. Central Garden & Pet Company was founded in 1955 and is headquartered in Walnut Creek, California.