Critical Contrast: Grove Collaborative (NYSE:GROV) and Kenvue (NYSE:KVUE)

Grove Collaborative (NYSE:GROV) and Kenvue (NYSE:KVUE) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$203.43 million	0.26	-$27.42 million	($0.62)	-2.07
Kenvue	$15.46 billion	2.15	$1.03 billion	$0.75	23.09

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

Volatility & Risk

Grove Collaborative has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Kenvue has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Insider and Institutional Ownership

91.6% of Grove Collaborative shares are held by institutional investors. Comparatively, 97.6% of Kenvue shares are held by institutional investors. 29.4% of Grove Collaborative shares are held by company insiders. Comparatively, 1.7% of Kenvue shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Grove Collaborative and Kenvue’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%
Kenvue	9.55%	20.02%	7.74%

Analyst Ratings

This is a summary of recent recommendations and price targets for Grove Collaborative and Kenvue, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	1	1	0	2.00
Kenvue	0	12	5	1	2.39

Grove Collaborative currently has a consensus target price of $1.60, suggesting a potential upside of 24.80%. Kenvue has a consensus target price of $20.23, suggesting a potential upside of 16.82%. Given Grove Collaborative’s higher probable upside, equities research analysts clearly believe Grove Collaborative is more favorable than Kenvue.

Summary

Kenvue beats Grove Collaborative on 12 of the 15 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 Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.