Grove Collaborative (NYSE:GROV – Get Free Report) and Walmart (NASDAQ:WMT – Get Free Report) are both consumer staples companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
91.6% of Grove Collaborative shares are held by institutional investors. Comparatively, 26.8% of Walmart shares are held by institutional investors. 30.3% of Grove Collaborative shares are held by company insiders. Comparatively, 0.1% of Walmart shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Grove Collaborative and Walmart”s top-line revenue, earnings per share (EPS) and 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 |
| Walmart | $713.16 billion | 1.20 | $21.89 billion | $2.77 | 38.81 |
Walmart has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than Walmart, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Grove Collaborative has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Walmart has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Grove Collaborative and Walmart, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grove Collaborative | 1 | 0 | 1 | 0 | 2.00 |
| Walmart | 0 | 4 | 32 | 3 | 2.97 |
Grove Collaborative currently has a consensus price target of $2.00, indicating a potential upside of 99.00%. Walmart has a consensus price target of $131.88, indicating a potential upside of 22.68%. Given Grove Collaborative’s higher probable upside, analysts plainly believe Grove Collaborative is more favorable than Walmart.
Profitability
This table compares Grove Collaborative and Walmart’s 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% |
| Walmart | 3.00% | 21.83% | 7.80% |
Summary
Walmart beats Grove Collaborative on 11 of the 15 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 Walmart
Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.
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