Contrasting Central Garden & Pet (NASDAQ:CENT) and Interparfums (NASDAQ:IPAR)

Central Garden & Pet (NASDAQ:CENT) and Interparfums (NASDAQ:IPAR) 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 analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Central Garden & Pet and Interparfums, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Garden & Pet	0	2	1	1	2.75
Interparfums	0	3	3	1	2.71

Central Garden & Pet presently has a consensus price target of $50.00, indicating a potential upside of 36.13%. Interparfums has a consensus price target of $105.20, indicating a potential upside of 14.68%. Given Central Garden & Pet’s stronger consensus rating and higher possible upside, equities analysts plainly believe Central Garden & Pet is more favorable than Interparfums.

Risk and Volatility

Central Garden & Pet has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Interparfums has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Central Garden & Pet	5.04%	10.99%	4.75%
Interparfums	11.31%	15.76%	10.95%

Valuation and Earnings

This table compares Central Garden & Pet and Interparfums”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Garden & Pet	$3.13 billion	0.73	$162.84 million	$2.45	14.99
Interparfums	$1.49 billion	1.98	$168.39 million	$5.24	17.51

Interparfums has lower revenue, but higher earnings than Central Garden & Pet. Central Garden & Pet is trading at a lower price-to-earnings ratio than Interparfums, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

16.1% of Central Garden & Pet shares are held by institutional investors. Comparatively, 55.6% of Interparfums shares are held by institutional investors. 8.2% of Central Garden & Pet shares are held by company insiders. Comparatively, 43.7% of Interparfums shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Interparfums beats Central Garden & Pet on 11 of the 14 factors compared between the two stocks.

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.

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.