Analyzing Koala (OTCMKTS:KARE) and Reynolds Consumer Products (NASDAQ:REYN)

Koala (OTCMKTS:KARE) and Reynolds Consumer Products (NASDAQ:REYN) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

26.8% of Reynolds Consumer Products shares are owned by institutional investors. 8.1% of Koala shares are owned by insiders. Comparatively, 0.4% of Reynolds Consumer Products shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Koala and Reynolds Consumer Products, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koala	0	0	0	0	0.00
Reynolds Consumer Products	0	7	0	0	2.00

Reynolds Consumer Products has a consensus price target of $23.60, indicating a potential upside of 12.54%. Given Reynolds Consumer Products’ stronger consensus rating and higher probable upside, analysts plainly believe Reynolds Consumer Products is more favorable than Koala.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Koala	N/A	N/A	N/A
Reynolds Consumer Products	8.09%	15.86%	7.07%

Risk & Volatility

Koala has a beta of 24.95, meaning that its stock price is 2,395% more volatile than the S&P 500. Comparatively, Reynolds Consumer Products has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Koala and Reynolds Consumer Products”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koala	N/A	N/A	N/A	N/A	N/A
Reynolds Consumer Products	$3.72 billion	1.19	$301.00 million	$1.44	14.56

Reynolds Consumer Products has higher revenue and earnings than Koala.

Summary

Reynolds Consumer Products beats Koala on 7 of the 9 factors compared between the two stocks.

About Koala

Koala Corporation, doing business as Tech World, Inc., a technology company, offers technical services in the areas of security administration, architecture and paradigms, access management system and processes, applications development, operations, data encryption, telecommunications, network and WAN, business continuity planning, crime law, and investigation and ethics. It also provides alternative energy sources for commercial offices and residential houses, and retirement homes; secure and phone encryption communication services; cellular and wireless data services; and staff augmentation and forensic recovery services, as well as writes applications for mobile phones. In addition, the company offers products for the government market that include thermal imaging cameras, secure communication systems, cellular and satellite phones, ERP and CRM software, and RFID and tracking equipment; and the fuel industry, such as car and truck HHO systems, fuel additives, water-engine heating and home cooking systems, and acetylene replacements. Further, it provides products for the television (TV) market, including 2-D to 3-D conversion boxes, cable TV networks, Internet over cable systems, and satellite TV and data systems; and the telecom market, such as calling cards, direct VOIP systems, WI-max and mobile banking systems, network management products, and unified communication systems, as well as for green-energy and bank markets. The company was incorporated in 1993 and is based in Vienna, Virginia.

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.