Grove Collaborative (NYSE:GROV – Get Free Report) and Krispy Kreme (NASDAQ:DNUT – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Earnings & Valuation
This table compares Grove Collaborative and Krispy Kreme”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grove Collaborative | $203.43 million | 0.30 | -$27.42 million | ($0.62) | -2.39 |
| Krispy Kreme | $1.67 billion | 0.31 | $3.10 million | ($2.99) | -1.01 |
Risk and Volatility
Grove Collaborative has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.
Insider & Institutional Ownership
91.6% of Grove Collaborative shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 29.4% of Grove Collaborative shares are owned by company insiders. Comparatively, 3.0% of Krispy Kreme shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Grove Collaborative and Krispy Kreme’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grove Collaborative | -12.59% | N/A | -30.45% |
| Krispy Kreme | -33.27% | -5.13% | -1.67% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Grove Collaborative and Krispy Kreme, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grove Collaborative | 1 | 1 | 1 | 0 | 2.00 |
| Krispy Kreme | 3 | 5 | 3 | 0 | 2.00 |
Grove Collaborative currently has a consensus price target of $1.60, suggesting a potential upside of 8.11%. Krispy Kreme has a consensus price target of $5.59, suggesting a potential upside of 84.96%. Given Krispy Kreme’s higher probable upside, analysts clearly believe Krispy Kreme is more favorable than Grove Collaborative.
Summary
Krispy Kreme beats Grove Collaborative on 8 of the 13 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 Krispy Kreme
Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.
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