Grove Collaborative (NYSE:GROV) and Ollie’s Bargain Outlet (NASDAQ:OLLI) Critical Comparison

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

Institutional and Insider Ownership

91.6% of Grove Collaborative shares are held by institutional investors. 0.9% of Ollie’s Bargain Outlet shares are held by insiders. Comparatively, 29.4% of Grove Collaborative 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.

Profitability

This table compares Ollie’s Bargain Outlet and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ollie’s Bargain Outlet	8.81%	12.86%	8.29%
Grove Collaborative	-12.59%	N/A	-30.45%

Valuation and Earnings

This table compares Ollie’s Bargain Outlet and Grove Collaborative”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ollie’s Bargain Outlet	$2.27 billion	3.12	$199.76 million	$3.62	31.93
Grove Collaborative	$203.43 million	0.25	-$27.42 million	($0.62)	-1.96

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.

Analyst Ratings

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

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

Ollie’s Bargain Outlet presently has a consensus price target of $142.57, suggesting a potential upside of 23.34%. Grove Collaborative has a consensus price target of $1.60, suggesting a potential upside of 31.69%. Given Grove Collaborative’s higher possible upside, analysts plainly believe Grove Collaborative is more favorable than Ollie’s Bargain Outlet.

Volatility and Risk

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

Summary

Ollie’s Bargain Outlet beats Grove Collaborative on 9 of the 13 factors compared between the two stocks.

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.

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.