Contrasting GrowGeneration (GRWG) & The Competition

GrowGeneration (NASDAQ:GRWG) is one of 285 public companies in the “Specialty Retail” industry, but how does it compare to its competitors? We will compare GrowGeneration to related companies based on the strength of its institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Insider & Institutional Ownership

36.0% of GrowGeneration shares are held by institutional investors. Comparatively, 52.0% of shares of all “Specialty Retail” companies are held by institutional investors. 8.1% of GrowGeneration shares are held by company insiders. Comparatively, 21.0% of shares of all “Specialty Retail” companies 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for GrowGeneration and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	1	1	1	0	2.00
GrowGeneration Competitors	3528	15224	21186	548	2.46

GrowGeneration currently has a consensus price target of $2.50, indicating a potential upside of 40.06%. As a group, “Specialty Retail” companies have a potential upside of 12.69%. Given GrowGeneration’s higher possible upside, equities analysts plainly believe GrowGeneration is more favorable than its competitors.

Valuation and Earnings

This table compares GrowGeneration and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GrowGeneration	$161.74 million	-$24.05 million	-6.61
GrowGeneration Competitors	$7.02 billion	$390.09 million	16.04

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

Risk & Volatility

GrowGeneration has a beta of 2.51, indicating that its stock price is 151% more volatile than the S&P 500. Comparatively, GrowGeneration’s competitors have a beta of 1.78, indicating that their average stock price is 78% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrowGeneration	-10.07%	-17.44%	-11.52%
GrowGeneration Competitors	-2.02%	-28.83%	3.24%

Summary

GrowGeneration competitors beat GrowGeneration on 10 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.