Reynolds Consumer Products (NASDAQ:REYN) vs. Traeger (NYSE:COOK) Head-To-Head Contrast

Reynolds Consumer Products (NASDAQ:REYN) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reynolds Consumer Products	8.44%	16.00%	6.98%
Traeger	-6.02%	-5.67%	-1.93%

Volatility and Risk

Reynolds Consumer Products has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Traeger has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Institutional & Insider Ownership

26.8% of Reynolds Consumer Products shares are owned by institutional investors. Comparatively, 46.8% of Traeger shares are owned by institutional investors. 0.2% of Reynolds Consumer Products shares are owned by insiders. Comparatively, 14.7% of Traeger shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Reynolds Consumer Products and Traeger”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reynolds Consumer Products	$3.70 billion	1.33	$352.00 million	$1.49	15.70
Traeger	$604.07 million	0.29	-$34.01 million	($0.27)	-4.84

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

Analyst Ratings

This is a breakdown of recent ratings for Reynolds Consumer Products and Traeger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reynolds Consumer Products	0	6	3	0	2.33
Traeger	1	5	1	0	2.00

Reynolds Consumer Products presently has a consensus target price of $28.00, suggesting a potential upside of 19.66%. Traeger has a consensus target price of $2.1250, suggesting a potential upside of 62.46%. Given Traeger’s higher possible upside, analysts plainly believe Traeger is more favorable than Reynolds Consumer Products.

Summary

Reynolds Consumer Products beats Traeger on 10 of the 14 factors compared between the two stocks.

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.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.