Analyzing GrowGeneration (GRWG) & The Competition

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

Analyst Recommendations

This is a summary of recent ratings and price targets for GrowGeneration and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	1	1	1	0	2.00
GrowGeneration Competitors	3701	15637	21656	594	2.46

GrowGeneration currently has a consensus price target of $2.50, suggesting a potential upside of 100.00%. As a group, “Specialty Retail” companies have a potential upside of 5.22%. Given GrowGeneration’s higher possible upside, research analysts plainly believe GrowGeneration is more favorable than its peers.

Profitability

This table compares GrowGeneration and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrowGeneration	-8.60%	-15.26%	-10.01%
GrowGeneration Competitors	-3.59%	-28.53%	3.21%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GrowGeneration	$164.21 million	-$24.05 million	-5.43
GrowGeneration Competitors	$7.06 billion	$386.51 million	31.37

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

Risk and Volatility

GrowGeneration has a beta of 2.66, meaning that its share price is 166% more volatile than the S&P 500. Comparatively, GrowGeneration’s peers have a beta of 1.91, meaning that their average share price is 91% more volatile than the S&P 500.

Insider and Institutional Ownership

36.0% of GrowGeneration shares are owned by institutional investors. Comparatively, 51.9% 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, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

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

About GrowGeneration

GrowGeneration is a U.S. retailer of hydroponic and organic gardening supplies. The company serves home gardeners and commercial cultivators through retail garden centers and online sales. Its products include plant nutrients and growing media, lighting, irrigation systems, climate-control equipment, and other supplies used for indoor and outdoor cultivation. GrowGeneration also offers cultivation-related services and products under its own brands. Founded in 2014, the company has operated garden centers in multiple U.S. markets.