Head-To-Head Contrast: GrowGeneration (GRWG) & The Competition

GrowGeneration (NASDAQ:GRWG) is one of 286 public companies in the “Specialty Retail” industry, but how does it contrast to its peers? We will compare GrowGeneration to related businesses based on the strength of its valuation, profitability, dividends, institutional ownership, risk, earnings and analyst recommendations.

Risk & Volatility

GrowGeneration has a beta of 2.51, indicating that its share price is 151% more volatile than the S&P 500. Comparatively, GrowGeneration’s peers have a beta of 1.63, indicating that their average share price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for GrowGeneration and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	1	2	0	0	1.67
GrowGeneration Competitors	3539	15224	21174	547	2.46

As a group, “Specialty Retail” companies have a potential upside of 9.23%. Given GrowGeneration’s peers stronger consensus rating and higher possible upside, analysts clearly believe GrowGeneration has less favorable growth aspects than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrowGeneration	-11.91%	-19.50%	-12.91%
GrowGeneration Competitors	-2.67%	-25.41%	2.94%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GrowGeneration	$161.74 million	-$24.05 million	-4.66
GrowGeneration Competitors	$6.98 billion	$387.72 million	14.20

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

Insider & Institutional Ownership

36.0% of GrowGeneration shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 8.1% of GrowGeneration shares are owned by insiders. Comparatively, 21.1% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

GrowGeneration peers beat GrowGeneration on 11 of the 13 factors compared.

About GrowGeneration

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company engages in the marketing and distribution of nutrients, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Montana, New York, Ohio, Mississippi, Missouri, Arizona, Rhode Island, Florida, Massachusetts, Virginia, New Jersey, and New Mexico, as well as growgeneration.com, an online superstore for cultivators, a wholesale business for resellers, HRG Distribution, and benching, racking, and storage solutions and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.