FUCHS (OTCMKTS:FUPBY – Get Free Report) and Scotts Miracle-Gro (NYSE:SMG – Get Free Report) are both mid-cap materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Risk and Volatility
FUCHS has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.
Dividends
FUCHS pays an annual dividend of $0.19 per share and has a dividend yield of 1.6%. Scotts Miracle-Gro pays an annual dividend of $2.64 per share and has a dividend yield of 4.4%. FUCHS pays out 25.3% of its earnings in the form of a dividend. Scotts Miracle-Gro pays out 229.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FUCHS | 1 | 1 | 2 | 1 | 2.60 |
| Scotts Miracle-Gro | 0 | 4 | 3 | 0 | 2.43 |
Scotts Miracle-Gro has a consensus price target of $75.40, indicating a potential upside of 24.46%. Given Scotts Miracle-Gro’s higher probable upside, analysts clearly believe Scotts Miracle-Gro is more favorable than FUCHS.
Insider & Institutional Ownership
74.1% of Scotts Miracle-Gro shares are owned by institutional investors. 24.4% of Scotts Miracle-Gro 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.
Profitability
This table compares FUCHS and Scotts Miracle-Gro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FUCHS | 9.04% | 17.80% | 12.90% |
| Scotts Miracle-Gro | 2.19% | -81.90% | 8.97% |
Valuation and Earnings
This table compares FUCHS and Scotts Miracle-Gro”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FUCHS | $4.03 billion | 1.50 | $346.21 million | $0.75 | 15.36 |
| Scotts Miracle-Gro | $3.41 billion | 1.03 | $145.20 million | $1.15 | 52.68 |
FUCHS has higher revenue and earnings than Scotts Miracle-Gro. FUCHS is trading at a lower price-to-earnings ratio than Scotts Miracle-Gro, indicating that it is currently the more affordable of the two stocks.
Summary
FUCHS beats Scotts Miracle-Gro on 9 of the 17 factors compared between the two stocks.
About FUCHS
Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.
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.
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