Comparing Nestle (OTCMKTS:NSRGY) and Grove Collaborative (NYSE:GROV)

Grove Collaborative (NYSE:GROV) and Nestle (OTCMKTS:NSRGY) are both consumer staples companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Grove Collaborative and Nestle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	1	1	0	2.00
Nestle	1	3	0	1	2.20

Grove Collaborative presently has a consensus target price of $1.35, suggesting a potential downside of 11.48%. Nestle has a consensus target price of $91.00, suggesting a potential downside of 2.37%. Given Nestle’s stronger consensus rating and higher probable upside, analysts clearly believe Nestle is more favorable than Grove Collaborative.

Risk & Volatility

Grove Collaborative has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Nestle has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Profitability

This table compares Grove Collaborative and Nestle’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%
Nestle	N/A	N/A	N/A

Valuation & Earnings

This table compares Grove Collaborative and Nestle”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$203.43 million	0.31	-$27.42 million	($0.58)	-2.63
Nestle	$103.78 billion	2.31	$12.36 billion	N/A	N/A

Nestle has higher revenue and earnings than Grove Collaborative.

Insider & Institutional Ownership

91.6% of Grove Collaborative shares are owned by institutional investors. Comparatively, 0.6% of Nestle shares are owned by institutional investors. 29.4% of Grove Collaborative shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Nestle beats Grove Collaborative on 8 of the 12 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 Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.