Analyzing Grove Collaborative (NYSE:GROV) and BBB Foods (NYSE:TBBB)

BBB Foods (NYSE:TBBB) and Grove Collaborative (NYSE:GROV) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for BBB Foods and Grove Collaborative, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BBB Foods	0	3	7	0	2.70
Grove Collaborative	1	1	1	0	2.00

BBB Foods presently has a consensus target price of $51.88, indicating a potential downside of 23.06%. Grove Collaborative has a consensus target price of $2.00, indicating a potential upside of 82.32%. Given Grove Collaborative’s higher possible upside, analysts plainly believe Grove Collaborative is more favorable than BBB Foods.

Insider and Institutional Ownership

8.4% of BBB Foods shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 30.3% of Grove Collaborative shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares BBB Foods and Grove Collaborative”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BBB Foods	$4.08 billion	1.96	-$148.23 million	($0.94)	-71.72
Grove Collaborative	$173.72 million	0.27	-$11.72 million	($0.19)	-5.77

Grove Collaborative has lower revenue, but higher earnings than BBB Foods. BBB Foods is trading at a lower price-to-earnings ratio than Grove Collaborative, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BBB Foods and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BBB Foods	-1.94%	-36.98%	-5.56%
Grove Collaborative	-4.07%	N/A	-12.35%

Volatility and Risk

BBB Foods has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Summary

Grove Collaborative beats BBB Foods on 7 of the 13 factors compared between the two stocks.

About BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.

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.