Financial Survey: Hydrofarm Holdings Group (HYFM) versus Its Competitors

Hydrofarm Holdings Group (NASDAQ:HYFM) is one of 434 publicly-traded companies in the “Machinery” industry, but how does it compare to its competitors? We will compare Hydrofarm Holdings Group to related businesses based on the strength of its earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

26.6% of Hydrofarm Holdings Group shares are held by institutional investors. Comparatively, 52.2% of shares of all “Machinery” companies are held by institutional investors. 14.9% of Hydrofarm Holdings Group shares are held by insiders. Comparatively, 13.9% of shares of all “Machinery” companies are held by 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.

Earnings and Valuation

This table compares Hydrofarm Holdings Group and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hydrofarm Holdings Group	$106.21 million	-$289.79 million	-0.02
Hydrofarm Holdings Group Competitors	$4.83 billion	$354.64 million	-20.95

Hydrofarm Holdings Group’s competitors have higher revenue and earnings than Hydrofarm Holdings Group. Hydrofarm Holdings Group is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Hydrofarm Holdings Group has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Hydrofarm Holdings Group’s competitors have a beta of 4.53, meaning that their average share price is 353% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Hydrofarm Holdings Group and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydrofarm Holdings Group	1	0	0	0	1.00
Hydrofarm Holdings Group Competitors	4090	14492	17912	777	2.41

As a group, “Machinery” companies have a potential upside of 31.07%. Given Hydrofarm Holdings Group’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Hydrofarm Holdings Group has less favorable growth aspects than its competitors.

Profitability

This table compares Hydrofarm Holdings Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydrofarm Holdings Group	-267.20%	-500.33%	-159.25%
Hydrofarm Holdings Group Competitors	-1,946.94%	-10.14%	0.87%

Summary

Hydrofarm Holdings Group competitors beat Hydrofarm Holdings Group on 10 of the 13 factors compared.

Hydrofarm Holdings Group Company Profile

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various growing media typically made from soil, peat, rock wool or coconut fiber, and others. The company offers its products to specialty hydroponic retailers, commercial resellers and greenhouse builders, garden centers, hardware stores, and e-commerce retailers under the Active Air, Active Aqua, Aurora Peat Products, HEAVY 16, House & Garden, Gaia Green, Grotek, Innovative Growers Equipment, Mad Farmer, Phantom, PHOTOBIO, Procision, Roots Organics, Soul, and SunBlaster brands. It serves its products through a range of commercial and home gardening equipment and supplies retailers. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.