Analyzing GrowGeneration (GRWG) and 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 competitors? We will compare GrowGeneration to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, earnings, dividends, profitability and valuation.

Earnings & Valuation

This table compares GrowGeneration and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GrowGeneration	$161.74 million	-$24.05 million	-5.59
GrowGeneration Competitors	$7.05 billion	$386.51 million	31.16

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

Risk and Volatility

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

Insider & Institutional Ownership

36.0% of GrowGeneration shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 8.1% of GrowGeneration shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for GrowGeneration and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	1	1	1	0	2.00
GrowGeneration Competitors	3683	15611	21635	590	2.46

GrowGeneration currently has a consensus price target of $2.50, suggesting a potential upside of 65.56%. As a group, “Specialty Retail” companies have a potential upside of 6.30%. Given GrowGeneration’s higher probable upside, equities analysts clearly believe GrowGeneration is more favorable than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrowGeneration	-10.07%	-17.44%	-11.52%
GrowGeneration Competitors	-3.62%	-13.77%	3.21%

Summary

GrowGeneration competitors beat GrowGeneration on 10 of the 12 factors compared.

GrowGeneration Company Profile

GrowGeneration Corp. (NASDAQ:GRWG) is a specialty retailer serving the hydroponic and organic gardening markets. The company sells cultivation supplies and equipment to commercial and home growers through its retail stores and e-commerce platform. Its product offerings include hydroponic systems, growing media, plant nutrients, lighting, irrigation equipment, environmental-control systems, propagation supplies, and other gardening products. GrowGeneration also provides cultivation-related supplies and resources for customers growing a variety of indoor and greenhouse crops.