Financial Contrast: GrowGeneration (GRWG) versus The Competition

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

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GrowGeneration	$161.74 million	-$24.05 million	-5.94
GrowGeneration Competitors	$7.03 billion	$390.97 million	16.09

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

Profitability

This table compares GrowGeneration and its rivals’ 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	-3.35%	-30.14%	3.22%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	1	1	1	0	2.00
GrowGeneration Competitors	3561	15344	21322	555	2.46

GrowGeneration currently has a consensus price target of $2.50, suggesting a potential upside of 55.76%. As a group, “Specialty Retail” companies have a potential upside of 14.73%. Given GrowGeneration’s higher probable upside, research analysts plainly believe GrowGeneration is more favorable than its rivals.

Insider and Institutional Ownership

36.0% of GrowGeneration shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Specialty Retail” companies are owned by institutional investors. 8.1% of GrowGeneration shares are owned by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

GrowGeneration has a beta of 2.56, suggesting that its share price is 156% more volatile than the S&P 500. Comparatively, GrowGeneration’s rivals have a beta of 1.77, suggesting that their average share price is 77% more volatile than the S&P 500.

Summary

GrowGeneration rivals beat GrowGeneration on 10 of the 13 factors compared.

About GrowGeneration

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company engages in the marketing and distribution of nutrients, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Montana, New York, Ohio, Mississippi, Missouri, Arizona, Rhode Island, Florida, Massachusetts, Virginia, New Jersey, and New Mexico, as well as growgeneration.com, an online superstore for cultivators, a wholesale business for resellers, HRG Distribution, and benching, racking, and storage solutions and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.