Reviewing Flotek Industries (NYSE:FTK) and Scotts Miracle-Gro (NYSE:SMG)

Flotek Industries (NYSE:FTK) and Scotts Miracle-Gro (NYSE:SMG) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Flotek Industries and Scotts Miracle-Gro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flotek Industries	8.81%	24.56%	12.01%
Scotts Miracle-Gro	3.16%	-77.42%	8.57%

Risk and Volatility

Flotek Industries has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Flotek Industries and Scotts Miracle-Gro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flotek Industries	0	0	4	1	3.20
Scotts Miracle-Gro	0	2	5	0	2.71

Flotek Industries presently has a consensus target price of $34.67, suggesting a potential upside of 36.94%. Scotts Miracle-Gro has a consensus target price of $74.80, suggesting a potential upside of 16.63%. Given Flotek Industries’ stronger consensus rating and higher possible upside, equities analysts plainly believe Flotek Industries is more favorable than Scotts Miracle-Gro.

Earnings & Valuation

This table compares Flotek Industries and Scotts Miracle-Gro”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flotek Industries	$237.26 million	3.87	$30.53 million	$0.80	31.64
Scotts Miracle-Gro	$3.29 billion	1.13	$103.90 million	$1.68	38.18

Scotts Miracle-Gro has higher revenue and earnings than Flotek Industries. Flotek Industries is trading at a lower price-to-earnings ratio than Scotts Miracle-Gro, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

10.9% of Flotek Industries shares are held by institutional investors. Comparatively, 74.1% of Scotts Miracle-Gro shares are held by institutional investors. 2.4% of Flotek Industries shares are held by insiders. Comparatively, 24.4% of Scotts Miracle-Gro shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Scotts Miracle-Gro beats Flotek Industries on 8 of the 15 factors compared between the two stocks.

About Flotek Industries

Flotek Industries is a technology-focused company serving the energy industry with specialty chemistry and data analytics. Its energy chemistry business develops and supplies chemical products used in oil and natural gas drilling, completion, production and other well operations. Through its data analytics business, Flotek provides measurement and analytical services that help energy customers monitor production and make operational decisions. Its offerings combine field data with laboratory analysis and chemistry expertise.

About Scotts Miracle-Gro

Scotts Miracle-Gro Company develops, manufactures and markets branded products for lawn care and gardening. Its offerings include grass seed, lawn fertilizers and weed-control products, soils, plant foods and other products for growing and maintaining lawns, gardens and landscapes. Its consumer brands include Scotts, Miracle-Gro and Ortho. The company also has a Hawthorne business that supplies equipment and products for indoor and hydroponic gardening. Scotts Miracle-Gro’s products are sold primarily in North America, with additional operations and sales in international markets.