Contrasting Unicharm (OTCMKTS:UNICY) and Central Garden & Pet (NASDAQ:CENTA)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unicharm	$6.32 billion	1.66	$436.93 million	$0.12	25.08
Central Garden & Pet	$3.13 billion	0.69	$162.84 million	$2.75	12.57

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

Analyst Recommendations

This is a summary of current ratings and target prices for Unicharm and Central Garden & Pet, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unicharm	0	1	0	1	3.00
Central Garden & Pet	1	2	2	1	2.50

Central Garden & Pet has a consensus target price of $44.00, suggesting a potential upside of 27.28%. Given Central Garden & Pet’s higher possible upside, analysts clearly believe Central Garden & Pet is more favorable than Unicharm.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Unicharm	6.33%	6.78%	4.93%
Central Garden & Pet	5.42%	11.55%	5.04%

Risk & Volatility

Unicharm has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Central Garden & Pet beats Unicharm on 8 of the 14 factors compared between the two stocks.

About Unicharm

Unicharm Corporation engages in the manufacturing and sale of wellness, feminine, baby and children, kirei, and pet care products in Japan and internationally. The company's baby and child care products, including disposable diapers and wipes under the Moony, MamyPoko, Oyasumiman, and Torepanman brands; feminine care products comprise napkins, tampons, panty liners, sanitary short, panty liners, and other feminine care products under the Sofy, Center-In, and Unicharm brand names; and wellness care products include napkin-type incontinence pads, pants-type diapers, tape-type diapers, pants-type specialized urine pads, and tape-type specialized urine pads under the Lifree and Charmnap brand. It also provides masks under the Unicharm brand; home care products, including cleaning sheets under the Wave brand name; cosmetic cotton and wet wipes under the Silcot brand; and paper towels under the Cook Up brand name. In addition, the company offers pet care products that include pet foods, excrement cleanup sheets, system toilets, and disposable diapers under the Grand Deli, Best Balance, Physicalife Dog, Silver Plate, Aiken Genki, Manner Wear, Deo Sheet, Silver Spoon, AllWell, Physicalife Cat, Deo Toilet, Deo Sand, Deo Clean, and Neko Genki brands; and deodorizing beads. Further, it is involved in the manufacture and sale of industrial materials related products, etc., as well as food-packaging materials. Unicharm Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

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.