Financial Comparison: GrowGeneration (GRWG) & AeroGrow International (AERO)

AeroGrow International (OTCMKTS:AERO) and GrowGeneration (OTCMKTS:GRWG) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Insider & Institutional Ownership

0.0% of AeroGrow International shares are held by institutional investors. Comparatively, 0.6% of GrowGeneration shares are held by institutional investors. 12.8% of AeroGrow International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares AeroGrow International and GrowGeneration’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AeroGrow International $32.30 million 2.51 -$440,000.00 N/A N/A
GrowGeneration $14.36 million 5.61 -$2.54 million ($0.18) -16.06

AeroGrow International has higher revenue and earnings than GrowGeneration.

Profitability

This table compares AeroGrow International and GrowGeneration’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AeroGrow International 2.01% 5.82% 3.73%
GrowGeneration -17.50% -20.21% -15.79%

Analyst Recommendations

This is a breakdown of current recommendations for AeroGrow International and GrowGeneration, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AeroGrow International 0 0 0 0 N/A
GrowGeneration 0 0 0 0 N/A

Summary

AeroGrow International beats GrowGeneration on 6 of the 8 factors compared between the two stocks.

About AeroGrow International

AeroGrow International, Inc. engages in the development, marketing, direct-selling, and wholesale of indoor garden systems to consumers and retailers in the United States, Canada, and various countries in Europe. The company's principal products include indoor gardens and proprietary seed pod kits that allow consumers to grow vegetables, such as tomatoes, chili peppers, and salad greens; fresh herbs comprising cilantro, chives, basil, dill, oregano, and mint; and flowers, which comprise petunias, snapdragons, geraniums, and vinca. It also provides grow lights and a patented nutrient formula, as well as various cooking, gardening, and decor accessories. The company offers its in-home garden systems under the AeroGardens name. Its products are used in the gardening, cooking, healthy eating, and home and office décor markets. It also provides its products through direct-to-consumer sales channels, including direct mail catalogue, email marketing, and Internet marketing. The company was founded in 2002 and is headquartered in Boulder, Colorado. AeroGrow International, Inc. is a subsidiary of SMG Growing Media, Inc.

About GrowGeneration

GrowGeneration Corp., through its subsidiaries, operates retail hydroponic stores. It offers farming soil, hydroponic equipment, lighting, plant nutrients, and various other products. The company serves home growers of organic vegetables and fruits, do-it yourselfers, and growers in the cannabis related markets. As of December 31, 2017, it operated 13 retail hydroponic/gardening stores, including 8 stores located in Colorado, 2 stores in California, 2 stores in Nevada, and 1 store in Washington. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Denver, Colorado.

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