Comparing ARKO (NASDAQ:ARKO) and Grove Collaborative (NYSE:GROV)

Grove Collaborative (NYSE:GROV) and ARKO (NASDAQ:ARKO) are both small-cap consumer staples companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Earnings and Valuation

This table compares Grove Collaborative and ARKO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$203.43 million	0.27	-$27.42 million	($0.58)	-2.33
ARKO	$7.84 billion	0.06	$20.84 million	$0.11	38.82

ARKO has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than ARKO, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

91.6% of Grove Collaborative shares are held by institutional investors. Comparatively, 78.3% of ARKO shares are held by institutional investors. 29.4% of Grove Collaborative shares are held by insiders. Comparatively, 22.5% of ARKO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Grove Collaborative has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, ARKO has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Grove Collaborative and ARKO, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	1	1	0	2.00
ARKO	1	3	1	1	2.33

Grove Collaborative presently has a consensus target price of $1.35, suggesting a potential downside of 0.07%. ARKO has a consensus target price of $7.13, suggesting a potential upside of 66.86%. Given ARKO’s stronger consensus rating and higher probable upside, analysts plainly believe ARKO is more favorable than Grove Collaborative.

Profitability

This table compares Grove Collaborative and ARKO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grove Collaborative	-11.41%	N/A	-21.21%
ARKO	0.18%	5.50%	0.41%

Summary

ARKO beats Grove Collaborative on 10 of the 14 factors compared between the two stocks.

About Grove Collaborative

Grove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It offers household, personal care, beauty, and other consumer products through retail channels, third parties, direct-to-consumer platform, and mobile applications, as well as online store. The company is headquartered in San Francisco, California.

About ARKO

Arko Corp. operates convenience stores in the United States. It operates through Retail, Wholesale, Fleet Fueling, and GPMP segments. The Retail segment engages in the sale of fuel and merchandise to retail consumers. Its Wholesale segment supplies fuel to third-party dealers and consignment agents. The Fleet Fueling segment supplies fuel to proprietary and third-party cardlock, and issuance of proprietary fuel cards. Its GPMP segment supplies fuel to retail and wholesale segments. The company is based in Richmond, Virginia.