Analyzing Grove Collaborative (NYSE:GROV) and Village Farms International (NASDAQ:VFF)

Village Farms International (NASDAQ:VFF) and Grove Collaborative (NYSE:GROV) are both small-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

This table compares Village Farms International and Grove Collaborative”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Village Farms International	$336.18 million	1.38	-$35.85 million	$0.18	22.33
Grove Collaborative	$180.81 million	0.28	-$27.42 million	($0.62)	-1.94

Grove Collaborative has lower revenue, but higher earnings than Village Farms International. Grove Collaborative is trading at a lower price-to-earnings ratio than Village Farms International, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

12.2% of Village Farms International shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 12.6% of Village Farms International shares are held by company insiders. Comparatively, 29.4% of Grove Collaborative shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Village Farms International and Grove Collaborative, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Village Farms International	0	1	2	1	3.00
Grove Collaborative	1	1	1	0	2.00

Grove Collaborative has a consensus price target of $1.60, suggesting a potential upside of 32.78%. Given Grove Collaborative’s higher probable upside, analysts plainly believe Grove Collaborative is more favorable than Village Farms International.

Volatility & Risk

Village Farms International has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Profitability

This table compares Village Farms International and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Village Farms International	7.47%	1.98%	1.35%
Grove Collaborative	-12.59%	N/A	-30.45%

Summary

Village Farms International beats Grove Collaborative on 11 of the 15 factors compared between the two stocks.

About Village Farms International

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.

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.