Scotts Miracle-Gro (NYSE:SMG) vs. Forafric Global (NASDAQ:AFRI) Critical Analysis

Scotts Miracle-Gro (NYSE:SMG) and Forafric Global (NASDAQ:AFRI) are both consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Insider & Institutional Ownership

74.1% of Scotts Miracle-Gro shares are held by institutional investors. Comparatively, 5.5% of Forafric Global shares are held by institutional investors. 25.4% of Scotts Miracle-Gro shares are held by company insiders. Comparatively, 13.5% of Forafric Global 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 Scotts Miracle-Gro and Forafric Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scotts Miracle-Gro	1.54%	-60.46%	6.35%
Forafric Global	N/A	N/A	N/A

Risk & Volatility

Scotts Miracle-Gro has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Forafric Global has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Earnings and Valuation

This table compares Scotts Miracle-Gro and Forafric Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scotts Miracle-Gro	$3.55 billion	0.90	-$34.90 million	$0.76	72.95
Forafric Global	$274.22 million	0.92	-$24.33 million	N/A	N/A

Forafric Global has lower revenue, but higher earnings than Scotts Miracle-Gro.

Analyst Ratings

This is a summary of current ratings and recommmendations for Scotts Miracle-Gro and Forafric Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scotts Miracle-Gro	0	4	4	0	2.50
Forafric Global	1	0	0	0	1.00

Scotts Miracle-Gro currently has a consensus target price of $69.17, suggesting a potential upside of 24.75%. Given Scotts Miracle-Gro’s stronger consensus rating and higher probable upside, research analysts plainly believe Scotts Miracle-Gro is more favorable than Forafric Global.

Summary

Scotts Miracle-Gro beats Forafric Global on 9 of the 12 factors compared between the two stocks.

About Scotts Miracle-Gro

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, General Hydroponics, Cyco, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

About Forafric Global

Forafric Global PLC engages in the purchase, storage, transport, processing, and sale of agricultural commodities and commodity products in Morocco, Burkina, Mali, Angola, and internationally. The company provides wheat flours and semolina; and secondary processing products, such as pasta and couscous under the TRIA and MayMouna brand names. It serves wholesale foods manufacturers and distributors. The company also exports its products to approximately 45 countries. Forafric Global PLC was founded in 1926 and is headquartered in Gibraltar.