Financial Review: Scotts Miracle-Gro (NYSE:SMG) and Pyxus International (OTCMKTS:PYYX)

Pyxus International (OTCMKTS:PYYXGet Free Report) and Scotts Miracle-Gro (NYSE:SMGGet Free Report) are both consumer staples companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Insider & Institutional Ownership

74.1% of Scotts Miracle-Gro shares are owned by institutional investors. 10.0% of Pyxus International shares are owned by insiders. Comparatively, 24.4% of Scotts Miracle-Gro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Pyxus International and Scotts Miracle-Gro, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pyxus International 0 0 0 0 0.00
Scotts Miracle-Gro 0 4 4 0 2.50

Scotts Miracle-Gro has a consensus price target of $74.00, indicating a potential upside of 21.18%. Given Scotts Miracle-Gro’s stronger consensus rating and higher probable upside, analysts plainly believe Scotts Miracle-Gro is more favorable than Pyxus International.

Valuation & Earnings

This table compares Pyxus International and Scotts Miracle-Gro”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pyxus International $119.15 million 0.59 $15.17 million ($0.20) -14.40
Scotts Miracle-Gro $3.41 billion 1.04 $145.20 million $1.79 34.12

Scotts Miracle-Gro has higher revenue and earnings than Pyxus International. Pyxus International is trading at a lower price-to-earnings ratio than Scotts Miracle-Gro, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Pyxus International has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 1.88, meaning that its share price is 88% more volatile than the S&P 500.

Profitability

This table compares Pyxus International and Scotts Miracle-Gro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pyxus International -0.22% -3.09% -0.27%
Scotts Miracle-Gro 3.27% -79.61% 8.53%

Summary

Scotts Miracle-Gro beats Pyxus International on 13 of the 14 factors compared between the two stocks.

About Pyxus International

(Get Free Report)

Pyxus International, Inc., an agricultural company, offers value-added products and services to businesses and customers. It also involved in the purchasing, processing, packing, storing, and shipping tobacco to manufacturers of cigarettes and other consumer tobacco products. The company offers its products in China, the United States, the United Arab Emirates, Indonesia, Russia, Northern Africa, and internationally. The company was formerly known as Old Holdco, Inc. Pyxus International, Inc. was founded in 1873 and is headquartered in Morrisville, North Carolina.

About Scotts Miracle-Gro

(Get Free Report)

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, General Hydroponics, Cyco, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

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