Reviewing GrowGeneration (NASDAQ:GRWG) & Dundee (OTCMKTS:DDEJF)

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

Analyst Ratings

This is a summary of recent ratings for GrowGeneration and Dundee, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrowGeneration	0	3	1	0	2.25
Dundee	0	0	0	0	0.00

GrowGeneration currently has a consensus target price of $2.38, suggesting a potential upside of 135.15%. Given GrowGeneration’s stronger consensus rating and higher possible upside, equities research analysts clearly believe GrowGeneration is more favorable than Dundee.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrowGeneration	-28.33%	-32.51%	-22.75%
Dundee	N/A	26.61%	23.95%

Volatility and Risk

GrowGeneration has a beta of 3.32, meaning that its stock price is 232% more volatile than the S&P 500. Comparatively, Dundee has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

36.0% of GrowGeneration shares are held by institutional investors. Comparatively, 3.0% of Dundee shares are held by institutional investors. 7.6% of GrowGeneration 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 & Valuation

This table compares GrowGeneration and Dundee”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrowGeneration	$188.87 million	0.32	-$49.51 million	($0.84)	-1.20
Dundee	$51.17 million	3.51	$43.14 million	$0.56	3.59

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

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.

About Dundee

Dundee Corporation is a publicly owned investment manager. Through its operating subsidiaries, the firm is engaged in diverse business activities in the areas of investment advisory, corporate finance, energy, resources, agriculture, real estate and infrastructure. The Corporation also holds, directly and indirectly, a portfolio of investments mostly in these key areas, as well as other select investments in both publicly listed and private enterprises. Dundee Corporation was formerly known as Dundee Bancorp, Inc. Dundee Corporation was founded in 1984 is based in Toronto, Canada with additional office in Vancouver, Canada.