GrowGeneration (GRWG) vs. Its Peers Financial Analysis

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

Analyst Ratings

This is a summary of current recommendations and price targets for GrowGeneration and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	1	1	1	0	2.00
GrowGeneration Competitors	3545	15304	21283	552	2.46

GrowGeneration currently has a consensus price target of $2.50, suggesting a potential upside of 51.06%. As a group, “Specialty Retail” companies have a potential upside of 12.40%. Given GrowGeneration’s higher possible upside, equities research analysts plainly believe GrowGeneration is more favorable than its rivals.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GrowGeneration	$166.68 million	-$24.05 million	-6.13
GrowGeneration Competitors	$7.06 billion	$390.09 million	17.07

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

Volatility & Risk

GrowGeneration has a beta of 2.51, meaning that its stock price is 151% more volatile than the S&P 500. Comparatively, GrowGeneration’s rivals have a beta of 1.76, meaning that their average stock price is 76% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Profitability

This table compares GrowGeneration and its rivals’ 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	-3.48%	-30.19%	3.19%

Summary

GrowGeneration rivals beat GrowGeneration on 10 of the 13 factors compared.

GrowGeneration Company Profile

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.