Head-To-Head Contrast: Grove Collaborative (NYSE:GROV) vs. Ollie’s Bargain Outlet (NASDAQ:OLLI)

Grove Collaborative (NYSE:GROV) and Ollie’s Bargain Outlet (NASDAQ:OLLI) are both consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.

Volatility & Risk

Grove Collaborative has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Ollie’s Bargain Outlet has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Profitability

This table compares Grove Collaborative and Ollie’s Bargain Outlet’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%
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%

Insider & Institutional Ownership

91.6% of Grove Collaborative shares are held by institutional investors. 29.4% of Grove Collaborative shares are held by company insiders. Comparatively, 0.9% of Ollie’s Bargain Outlet shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Grove Collaborative and Ollie’s Bargain Outlet, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	1	1	0	2.00
Ollie’s Bargain Outlet	0	4	12	0	2.75

Grove Collaborative currently has a consensus price target of $1.60, indicating a potential upside of 30.61%. Ollie’s Bargain Outlet has a consensus price target of $142.57, indicating a potential upside of 19.30%. Given Grove Collaborative’s higher probable upside, analysts clearly believe Grove Collaborative is more favorable than Ollie’s Bargain Outlet.

Earnings & Valuation

This table compares Grove Collaborative and Ollie’s Bargain Outlet”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	0.25	-$27.42 million	($0.62)	-1.98
Ollie’s Bargain Outlet	$2.27 billion	3.23	$199.76 million	$3.62	33.01

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

Summary

Ollie’s Bargain Outlet beats Grove Collaborative on 10 of the 14 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 Ollie’s Bargain Outlet

Ollie’s Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company’s products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie’s Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.