Reynolds Consumer Products (NASDAQ:REYN) and Interparfums (NASDAQ:IPAR) Critical Survey

Interparfums (NASDAQ:IPAR) and Reynolds Consumer Products (NASDAQ:REYN) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Interparfums and Reynolds Consumer Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interparfums	0	3	3	1	2.71
Reynolds Consumer Products	0	7	0	0	2.00

Interparfums presently has a consensus target price of $105.20, indicating a potential upside of 15.41%. Reynolds Consumer Products has a consensus target price of $23.60, indicating a potential upside of 13.03%. Given Interparfums’ stronger consensus rating and higher probable upside, analysts plainly believe Interparfums is more favorable than Reynolds Consumer Products.

Institutional & Insider Ownership

55.6% of Interparfums shares are held by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are held by institutional investors. 43.7% of Interparfums shares are held by company insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Interparfums has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Interparfums and Reynolds Consumer Products”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interparfums	$1.49 billion	1.96	$168.39 million	$5.24	17.40
Reynolds Consumer Products	$3.72 billion	1.18	$301.00 million	$1.44	14.50

Reynolds Consumer Products has higher revenue and earnings than Interparfums. Reynolds Consumer Products is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Interparfums and Reynolds Consumer Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interparfums	11.31%	15.76%	10.95%
Reynolds Consumer Products	8.09%	15.86%	7.07%

Dividends

Interparfums pays an annual dividend of $3.20 per share and has a dividend yield of 3.5%. Reynolds Consumer Products pays an annual dividend of $0.92 per share and has a dividend yield of 4.4%. Interparfums pays out 61.1% of its earnings in the form of a dividend. Reynolds Consumer Products pays out 63.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Interparfums has raised its dividend for 4 consecutive years.

Summary

Interparfums beats Reynolds Consumer Products on 14 of the 18 factors compared between the two stocks.

About Interparfums

Inter Parfums, Inc., together with its subsidiaries, manufactures, markets, and distributes a range of fragrances and fragrance related products in the United States and internationally. It operates in two segments, European Based Operations and United States Based Operations. The company offers its fragrance and cosmetic products under the Boucheron, Coach, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lanvin, Moncler, Montblanc, Rochas, S.T. Dupont, Van Cleef & Arpels, Abercrombie & Fitch, Anna Sui, Donna Karan, DKNY, Emanual Ungaro, Ferragamo, Graff, GUESS, Hollister, MCM, Oscar de la Renta, Ungaro, and Roberto Cavalli brands, as well as French Connection, Intimate, and Dunhill, Lacoste names. It sells its products to department stores, perfumeries, specialty stores, duty free shops, and domestic and international wholesalers, and distributors, as well as through e-commerce. The company was formerly known as Jean Philippe Fragrances, Inc. and changed its name to Inter Parfums, Inc. in July 1999. Inter Parfums, Inc. was founded in 1982 and is headquartered in New York, New York.

About Reynolds Consumer Products

Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces aluminum foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and EZ Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including compostable bags, bags made from recycled materials, and the orange bags. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand. The Presto Products segment primarily sells store brand products in food storage bags, trash bags, reusable storage containers, and plastic wrap categories. It offers both branded and store brand products to grocery stores, mass merchants, warehouse clubs, discount chains, dollar stores, drug stores, home improvement stores, military outlets, and eCommerce retailers. The company was founded in 1947 and is headquartered in Lake Forest, Illinois. Reynolds Consumer Products Inc. is a subsidiary of Packaging Finance Limited.