Aebi Schmidt (NASDAQ:AEBI) vs. Hydrofarm Holdings Group (NASDAQ:HYFM) Critical Survey

Aebi Schmidt (NASDAQ:AEBI) and Hydrofarm Holdings Group (NASDAQ:HYFM) are both small-cap industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Risk and Volatility

Aebi Schmidt has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Hydrofarm Holdings Group has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500.

Institutional and Insider Ownership

26.6% of Hydrofarm Holdings Group shares are owned by institutional investors. 39.1% of Aebi Schmidt shares are owned by company insiders. Comparatively, 14.9% of Hydrofarm Holdings Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Aebi Schmidt and Hydrofarm Holdings Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aebi Schmidt	1.09%	2.59%	1.04%
Hydrofarm Holdings Group	-267.20%	-500.33%	-159.25%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Aebi Schmidt and Hydrofarm Holdings Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aebi Schmidt	0	1	2	0	2.67
Hydrofarm Holdings Group	1	0	0	0	1.00

Aebi Schmidt currently has a consensus price target of $17.00, suggesting a potential upside of 46.55%. Given Aebi Schmidt’s stronger consensus rating and higher probable upside, research analysts plainly believe Aebi Schmidt is more favorable than Hydrofarm Holdings Group.

Valuation & Earnings

This table compares Aebi Schmidt and Hydrofarm Holdings Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aebi Schmidt	$1.53 billion	0.59	$9.74 million	$0.32	36.25
Hydrofarm Holdings Group	$106.21 million	0.04	-$289.79 million	($60.70)	-0.02

Aebi Schmidt has higher revenue and earnings than Hydrofarm Holdings Group. Hydrofarm Holdings Group is trading at a lower price-to-earnings ratio than Aebi Schmidt, indicating that it is currently the more affordable of the two stocks.

Summary

Aebi Schmidt beats Hydrofarm Holdings Group on 12 of the 13 factors compared between the two stocks.

About Aebi Schmidt

Aebi Schmidt Holding AG is a provider of mission-critical infrastructure, environmental and agricultural solutions. Aebi Schmidt Holding AG, formerly known as The Shyft Group Inc., is based in NOVI, Mich.

About Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various growing media typically made from soil, peat, rock wool or coconut fiber, and others. The company offers its products to specialty hydroponic retailers, commercial resellers and greenhouse builders, garden centers, hardware stores, and e-commerce retailers under the Active Air, Active Aqua, Aurora Peat Products, HEAVY 16, House & Garden, Gaia Green, Grotek, Innovative Growers Equipment, Mad Farmer, Phantom, PHOTOBIO, Procision, Roots Organics, Soul, and SunBlaster brands. It serves its products through a range of commercial and home gardening equipment and supplies retailers. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.