Reviewing KP Tissue (OTCMKTS:KPTSF) & Central Garden & Pet (NASDAQ:CENTA)

KP Tissue (OTCMKTS:KPTSF) and Central Garden & Pet (NASDAQ:CENTA) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
KP Tissue	N/A	N/A	N/A
Central Garden & Pet	5.39%	11.13%	4.93%

Analyst Ratings

This is a breakdown of current ratings for KP Tissue and Central Garden & Pet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KP Tissue	0	1	0	0	2.00
Central Garden & Pet	1	1	3	1	2.67

Central Garden & Pet has a consensus price target of $46.67, suggesting a potential upside of 21.43%. Given Central Garden & Pet’s stronger consensus rating and higher probable upside, analysts plainly believe Central Garden & Pet is more favorable than KP Tissue.

Earnings & Valuation

This table compares KP Tissue 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
KP Tissue	N/A	N/A	N/A	($0.22)	-41.35
Central Garden & Pet	$3.08 billion	0.78	$162.84 million	$2.68	14.34

Central Garden & Pet has higher revenue and earnings than KP Tissue. KP Tissue 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 KP Tissue on 12 of the 12 factors compared between the two stocks.

About KP Tissue

KP Tissue Inc., through its interest in Kruger Products L.P., produces, distributes, markets, and sells a range of disposable tissue products in Canada and the United States. The company operates through two segments, Consumer and Away-From-Home. It offers bathroom and facial tissues, paper towels, and napkins. The company markets its products under the Cashmere, SpongeTowels, Scotties, Purex, Bonterra, Metro, White Swan, White Cloud, Embassy, Satinelle, and Chalet brand names, as well as under private labels. KP Tissue Inc. was incorporated in 2012 and is headquartered in Mississauga, Canada.

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.