Citi Trends (NASDAQ:CTRN – Get Free Report) and GrowGeneration (NASDAQ:GRWG – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Earnings and Valuation
This table compares Citi Trends and GrowGeneration”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citi Trends | $819.96 million | 0.46 | $5.21 million | $0.82 | 55.35 |
| GrowGeneration | $161.74 million | 0.55 | -$24.05 million | ($0.27) | -5.60 |
Citi Trends has higher revenue and earnings than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than Citi Trends, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Citi Trends and GrowGeneration’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citi Trends | 0.84% | 8.11% | 2.00% |
| GrowGeneration | -10.07% | -17.44% | -11.52% |
Institutional and Insider Ownership
36.0% of GrowGeneration shares are owned by institutional investors. 9.6% of Citi Trends shares are owned by insiders. Comparatively, 8.1% of GrowGeneration shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk and Volatility
Citi Trends has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 2.66, meaning that its share price is 166% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Citi Trends and GrowGeneration, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citi Trends | 1 | 0 | 2 | 0 | 2.33 |
| GrowGeneration | 1 | 1 | 1 | 0 | 2.00 |
Citi Trends currently has a consensus price target of $81.00, indicating a potential upside of 78.45%. GrowGeneration has a consensus price target of $2.50, indicating a potential upside of 65.45%. Given Citi Trends’ stronger consensus rating and higher possible upside, research analysts clearly believe Citi Trends is more favorable than GrowGeneration.
Summary
Citi Trends beats GrowGeneration on 11 of the 14 factors compared between the two stocks.
About Citi Trends
Citi Trends, Inc. operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories. It also provides accessories and beauty products that include handbags, luggage, hats, belts, sunglasses, jewelry, and watches, as well as offers outerwear for men and women. In addition, the company offers home and lifestyle products comprising home products for the bedroom, bathroom, kitchen, and decorative accessories; and food, tech, team sports, health and products, as well as seasonal items, books, and toys. Citi Trends, Inc. provides its products primarily to African American and multicultural families in the United States. The company was formerly known as Allied Fashion, Inc. and changed its name to Citi Trends, Inc. in 2001. Citi Trends, Inc. was founded in 1946 and is headquartered in Savannah, Georgia.
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.
Receive News & Ratings for Citi Trends Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Citi Trends and related companies with MarketBeat.com's FREE daily email newsletter.
