Analyzing Reynolds Consumer Products (NASDAQ:REYN) and Bon Natural Life (NASDAQ:BON)

Bon Natural Life (NASDAQ:BON) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and price targets for Bon Natural Life and Reynolds Consumer Products, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bon Natural Life	1	0	0	0	1.00
Reynolds Consumer Products	0	8	2	0	2.20

Reynolds Consumer Products has a consensus target price of $26.25, suggesting a potential upside of 13.29%. Given Reynolds Consumer Products’ stronger consensus rating and higher probable upside, analysts clearly believe Reynolds Consumer Products is more favorable than Bon Natural Life.

Earnings and Valuation

This table compares Bon Natural Life and Reynolds Consumer Products”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bon Natural Life	$18.67 million	0.73	-$2.00 million	N/A	N/A
Reynolds Consumer Products	$3.70 billion	1.32	$352.00 million	$1.46	15.87

Reynolds Consumer Products has higher revenue and earnings than Bon Natural Life.

Institutional and Insider Ownership

0.6% of Bon Natural Life shares are held by institutional investors. Comparatively, 26.8% of Reynolds Consumer Products shares are held by institutional investors. 26.5% of Bon Natural Life shares are held by company insiders. Comparatively, 0.2% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bon Natural Life	N/A	N/A	N/A
Reynolds Consumer Products	8.20%	15.88%	7.01%

Volatility and Risk

Bon Natural Life has a beta of -0.35, indicating that its stock price is 135% less volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Summary

Reynolds Consumer Products beats Bon Natural Life on 11 of the 12 factors compared between the two stocks.

About Bon Natural Life

Bon Natural Life Limited, together with its subsidiaries, engages in the research and development, manufacture, and sale of functional active ingredients extracted from natural herb plants in the People’s Republic of China and internationally. The company provides personal care ingredients, such as plant extracted fragrance compounds to perfume and fragrance manufacturers; natural health supplements comprising powder drinks and bioactive food ingredient products primarily used as food additives; and nutritional supplements. Its products are principally used by manufacturer customers in the functional food, personal care, cosmetic, and pharmaceutical industries. The company was founded in 2006 and is headquartered in Grand Cayman, the Cayman Islands.

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.