Comparing Colgate-Palmolive (NYSE:CL) & Grove Collaborative (NYSE:GROV)

Colgate-Palmolive (NYSE:CL) and Grove Collaborative (NYSE:GROV) are both consumer staples companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Volatility and Risk

Colgate-Palmolive has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Colgate-Palmolive and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colgate-Palmolive	10.04%	386.76%	17.89%
Grove Collaborative	-5.52%	N/A	-16.95%

Institutional & Insider Ownership

80.4% of Colgate-Palmolive shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 0.4% of Colgate-Palmolive shares are held by company insiders. Comparatively, 30.3% of Grove Collaborative shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colgate-Palmolive	$20.38 billion	3.64	$2.13 billion	$2.57	36.12
Grove Collaborative	$173.72 million	0.26	-$11.72 million	($0.26)	-4.15

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

Analyst Recommendations

This is a breakdown of current recommendations for Colgate-Palmolive and Grove Collaborative, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colgate-Palmolive	0	7	12	0	2.63
Grove Collaborative	1	0	1	0	2.00

Colgate-Palmolive presently has a consensus price target of $97.41, suggesting a potential upside of 4.92%. Grove Collaborative has a consensus price target of $2.00, suggesting a potential upside of 85.19%. Given Grove Collaborative’s higher probable upside, analysts plainly believe Grove Collaborative is more favorable than Colgate-Palmolive.

Summary

Colgate-Palmolive beats Grove Collaborative on 10 of the 14 factors compared between the two stocks.

About Colgate-Palmolive

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, and Soupline to a range of traditional and eCommerce retailers, wholesalers, and distributors. It includes pharmaceutical products for dentists and other oral health professionals. Its Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

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.