Grove Collaborative (NYSE:GROV – Get Free Report) and Ingles Markets (NASDAQ:IMKTA – Get Free Report) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Grove Collaborative and Ingles Markets, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grove Collaborative | 1 | 0 | 1 | 0 | 2.00 |
| Ingles Markets | 0 | 0 | 1 | 0 | 3.00 |
Grove Collaborative presently has a consensus target price of $2.00, suggesting a potential upside of 99.00%. Given Grove Collaborative’s higher possible upside, research analysts clearly believe Grove Collaborative is more favorable than Ingles Markets.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grove Collaborative | $173.72 million | 0.25 | -$11.72 million | ($0.19) | -5.29 |
| Ingles Markets | $5.33 billion | 0.29 | $83.59 million | $5.47 | 15.12 |
Ingles Markets has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than Ingles Markets, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Grove Collaborative has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Ingles Markets has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Profitability
This table compares Grove Collaborative and Ingles Markets’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grove Collaborative | -4.07% | N/A | -12.35% |
| Ingles Markets | 1.92% | 6.30% | 4.01% |
Insider & Institutional Ownership
91.6% of Grove Collaborative shares are owned by institutional investors. Comparatively, 62.5% of Ingles Markets shares are owned by institutional investors. 30.3% of Grove Collaborative shares are owned by insiders. Comparatively, 22.8% of Ingles Markets shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Ingles Markets beats Grove Collaborative on 9 of the 13 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 Ingles Markets
Ingles Markets, Incorporated, together with its subsidiaries, operates a chain of supermarkets in the southeast United States. It offers food products, including grocery, meat and dairy products, produce, frozen foods, and other perishables; and non-food products, which include fuel centers, pharmacies, health and beauty care products, and general merchandise, as well as private label items. The company owns and operates a milk processing and packaging plant that supplies organic milk, fruit juices, and bottled water products to other retailers, food service distributors, and grocery warehouses. In addition, it provides home meal replacement items, delicatessens, bakeries, floral departments, and greeting cards, as well as broad selections of local organic, beverage, and health-related items. The company operates under the Ingles and Sav-Mor brand names. Ingles Markets, Incorporated was founded in 1963 and is headquartered in Asheville, North Carolina.
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