Comparing GrowGeneration (GRWG) & AeroGrow International (AERO)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GrowGeneration $14.36 million 5.52 -$2.54 million ($0.18) -16.00
AeroGrow International $32.30 million 2.56 -$440,000.00 N/A N/A

AeroGrow International has higher revenue and earnings than GrowGeneration.

Profitability

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

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for GrowGeneration and AeroGrow International, as reported by MarketBeat.

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

Institutional and Insider Ownership

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

Summary

AeroGrow International beats GrowGeneration on 7 of the 9 factors compared between the two stocks.

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.

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.

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