Critical Survey: Big Tree Cloud (NASDAQ:DSY) & Grove Collaborative (NYSE:GROV)

Big Tree Cloud (NASDAQ:DSY) and Grove Collaborative (NYSE:GROV) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Big Tree Cloud and Grove Collaborative, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Big Tree Cloud	1	0	0	0	1.00
Grove Collaborative	1	0	1	0	2.00

Grove Collaborative has a consensus price target of $2.00, indicating a potential upside of 63.93%. Given Grove Collaborative’s stronger consensus rating and higher possible upside, analysts plainly believe Grove Collaborative is more favorable than Big Tree Cloud.

Insider and Institutional Ownership

60.2% of Big Tree Cloud shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 34.1% of Big Tree Cloud shares are held by company insiders. Comparatively, 30.3% of Grove Collaborative shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Big Tree Cloud has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Big Tree Cloud and Grove Collaborative”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Big Tree Cloud	$2.56 million	13.36	-$32.53 million	N/A	N/A
Grove Collaborative	$173.72 million	0.30	-$11.72 million	($0.26)	-4.69

Grove Collaborative has higher revenue and earnings than Big Tree Cloud.

Profitability

This table compares Big Tree Cloud and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Big Tree Cloud	N/A	N/A	N/A
Grove Collaborative	-5.52%	N/A	-16.95%

Summary

Grove Collaborative beats Big Tree Cloud on 7 of the 11 factors compared between the two stocks.

About Big Tree Cloud

Big Tree Cloud Holdings Limited manufactures and sells personal care products and other consumer goods. The company is based in Shenzhen, China. Big Tree Cloud Holdings Limited operates as a subsidiary of Ploutos Group Limited.

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.