Head-To-Head Analysis: Scotts Miracle-Gro (NYSE:SMG) versus Scheid Vineyards (OTCMKTS:SVIN)

Scheid Vineyards (OTCMKTS:SVIN) and Scotts Miracle-Gro (NYSE:SMG) are both consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scheid Vineyards	-55.77%	N/A	N/A
Scotts Miracle-Gro	4.26%	-67.74%	7.01%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Scheid Vineyards and Scotts Miracle-Gro, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scheid Vineyards	0	0	0	0	0.00
Scotts Miracle-Gro	0	3	5	0	2.63

Scotts Miracle-Gro has a consensus target price of $70.33, suggesting a potential upside of 12.05%. Given Scotts Miracle-Gro’s stronger consensus rating and higher possible upside, analysts clearly believe Scotts Miracle-Gro is more favorable than Scheid Vineyards.

Volatility & Risk

Scheid Vineyards has a beta of -0.36, suggesting that its share price is 136% less volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.

Earnings & Valuation

This table compares Scheid Vineyards 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
Scheid Vineyards	$58.41 million	N/A	-$17.80 million	($27.83)	-0.07
Scotts Miracle-Gro	$3.41 billion	1.07	$145.20 million	$2.42	25.94

Scotts Miracle-Gro has higher revenue and earnings than Scheid Vineyards. Scheid Vineyards 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.

Insider and Institutional Ownership

74.1% of Scotts Miracle-Gro shares are held by institutional investors. 9.6% of Scheid Vineyards shares are held by insiders. Comparatively, 24.4% of Scotts Miracle-Gro shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Scotts Miracle-Gro beats Scheid Vineyards on 12 of the 13 factors compared between the two stocks.

About Scheid Vineyards

Scheid Vineyards Inc. manufactures and sells wine in the United States. The company operates vineyards in Monterey and San Benito counties of California. It offers red, white, reserve, dessert wines, as well as accessories, such as wine glass. The company was incorporated in 1971 and is based in Salinas, California.

About Scotts Miracle-Gro

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, General Hydroponics, Cyco, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.