Krispy Kreme (NASDAQ:DNUT – Get Free Report) and Grove Collaborative (NYSE:GROV – Get Free Report) are both small-cap consumer staples companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Volatility and Risk
Krispy Kreme has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Krispy Kreme and Grove Collaborative, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Krispy Kreme | 3 | 5 | 3 | 0 | 2.00 |
| Grove Collaborative | 1 | 1 | 1 | 0 | 2.00 |
Earnings & Valuation
This table compares Krispy Kreme and Grove Collaborative”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Krispy Kreme | $1.67 billion | 0.31 | $3.10 million | ($2.99) | -1.00 |
| Grove Collaborative | $180.81 million | 0.35 | -$27.42 million | ($0.62) | -2.45 |
Krispy Kreme has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than Krispy Kreme, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Krispy Kreme and Grove Collaborative’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Krispy Kreme | -33.27% | -5.13% | -1.67% |
| Grove Collaborative | -12.59% | N/A | -30.45% |
Insider & Institutional Ownership
81.7% of Krispy Kreme shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 3.0% of Krispy Kreme 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 will outperform the market over the long term.
Summary
Krispy Kreme beats Grove Collaborative on 7 of the 13 factors compared between the two stocks.
About Krispy Kreme
Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.
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.
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