GrowGeneration (GRWG) versus Its Rivals Critical Review

GrowGeneration (NASDAQ:GRWG – Get Free Report) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare GrowGeneration to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Profitability

This table compares GrowGeneration and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GrowGeneration -10.07% -17.44% -11.52%
GrowGeneration Competitors -3.62% -13.77% 3.21%

Valuation and Earnings

This table compares GrowGeneration and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
GrowGeneration $161.74 million -$24.05 million -5.59
GrowGeneration Competitors $7.05 billion $386.51 million 31.16

GrowGeneration’s competitors have higher revenue and earnings than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

36.0% of GrowGeneration shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 8.1% of GrowGeneration shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

GrowGeneration has a beta of 2.66, suggesting that its share price is 166% more volatile than the S&P 500. Comparatively, GrowGeneration’s competitors have a beta of 1.91, suggesting that their average share price is 91% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for GrowGeneration and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GrowGeneration 1 1 1 0 2.00
GrowGeneration Competitors 3683 15611 21635 590 2.46

GrowGeneration currently has a consensus price target of $2.50, indicating a potential upside of 65.56%. As a group, “Specialty Retail” companies have a potential upside of 6.30%. Given GrowGeneration’s higher possible upside, equities research analysts plainly believe GrowGeneration is more favorable than its competitors.

Summary

GrowGeneration competitors beat GrowGeneration on 10 of the 12 factors compared.

GrowGeneration Company Profile

(Get Free Report)

GrowGeneration Corp. (NASDAQ:GRWG) is a specialty retailer serving the hydroponic and organic gardening markets. The company sells cultivation supplies and equipment to commercial and home growers through its retail stores and e-commerce platform. Its product offerings include hydroponic systems, growing media, plant nutrients, lighting, irrigation equipment, environmental-control systems, propagation supplies, and other gardening products. GrowGeneration also provides cultivation-related supplies and resources for customers growing a variety of indoor and greenhouse crops.

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