Grove Collaborative (NYSE:GROV – Get Free Report) and Kroger (NYSE:KR – Get Free Report) are both consumer staples companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.
Volatility and Risk
Grove Collaborative has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Kroger has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.
Insider and Institutional Ownership
91.6% of Grove Collaborative shares are held by institutional investors. Comparatively, 80.9% of Kroger shares are held by institutional investors. 30.3% of Grove Collaborative shares are held by company insiders. Comparatively, 0.4% of Kroger shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Grove Collaborative and Kroger’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% |
| Kroger | 0.73% | 49.90% | 6.28% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Grove Collaborative and Kroger, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grove Collaborative | 1 | 1 | 0 | 0 | 1.50 |
| Kroger | 0 | 9 | 12 | 0 | 2.57 |
Kroger has a consensus target price of $70.35, indicating a potential upside of 2.59%. Given Kroger’s stronger consensus rating and higher probable upside, analysts plainly believe Kroger is more favorable than Grove Collaborative.
Earnings and Valuation
This table compares Grove Collaborative and Kroger”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grove Collaborative | $173.72 million | 0.27 | -$11.72 million | ($0.19) | -5.82 |
| Kroger | $147.64 billion | 0.27 | $1.02 billion | $1.84 | 37.27 |
Kroger has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than Kroger, indicating that it is currently the more affordable of the two stocks.
Summary
Kroger beats Grove Collaborative on 10 of the 13 factors compared between the two stocks.
About Grove Collaborative
Grove Collaborative Holdings, Inc. operates an online marketplace focused on natural and environmentally conscious household, personal care and beauty products. The company offers cleaning supplies, laundry products, paper goods, personal care items, cosmetics, wellness products and pet-care essentials through its digital platform. Grove sells products under its own brands, including Grove Co., as well as products from selected third-party brands. Its platform is designed to support recurring purchases and convenient home delivery, while emphasizing ingredient transparency, sustainability and reduced packaging impact.
About Kroger
The Kroger Co. is a U.S. grocery retailer founded in Cincinnati, Ohio, in 1883 by Bernard Kroger. It operates supermarkets and other grocery formats across the United States under banners including Kroger, Ralphs, Fred Meyer, Harris Teeter, King Soopers, and Smith’s. Alongside groceries and household essentials, Kroger stores offer services such as pharmacies and fuel centers. The company also sells products under its own private-label brands and produces many of those items through its food manufacturing operations.
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