Analyzing Grove Collaborative (NYSE:GROV) & WD-40 (NASDAQ:WDFC)

Grove Collaborative (NYSE:GROV) and WD-40 (NASDAQ:WDFC) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Volatility and Risk

Grove Collaborative has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, WD-40 has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Grove Collaborative and WD-40, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	0	1	1	0	2.50
WD-40	0	1	1	0	2.50

Grove Collaborative currently has a consensus price target of $1.35, suggesting a potential downside of 8.47%. WD-40 has a consensus price target of $290.00, suggesting a potential upside of 30.24%. Given WD-40’s higher possible upside, analysts plainly believe WD-40 is more favorable than Grove Collaborative.

Insider and Institutional Ownership

91.6% of Grove Collaborative shares are held by institutional investors. Comparatively, 91.5% of WD-40 shares are held by institutional investors. 29.4% of Grove Collaborative shares are held by company insiders. Comparatively, 0.8% of WD-40 shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Grove Collaborative and WD-40’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grove Collaborative	-11.41%	-6,372.67%	-21.21%
WD-40	14.13%	31.23%	16.49%

Valuation & Earnings

This table compares Grove Collaborative and WD-40″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$203.43 million	0.29	-$27.42 million	($0.58)	-2.54
WD-40	$590.56 million	5.10	$69.64 million	$6.35	35.06

WD-40 has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than WD-40, indicating that it is currently the more affordable of the two stocks.

Summary

WD-40 beats Grove Collaborative on 9 of the 12 factors compared between the two stocks.

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.

About WD-40

WD-40 Company develops and sells maintenance products, and homecare and cleaning products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides multi-purpose maintenance products that include aerosol sprays, non-aerosol trigger sprays, precision pens, and in liquid-bulk form products under the WD-40 Multi-Use brand name; specialty maintenance products, such as penetrants, degreasers, corrosion inhibitors, greases, lubricants, and rust removers under the WD-40 Specialist brand; and bike-specific products. It also offers multi-purpose and specialty drip oils, and spray lubricant products, as well as other specialty maintenance products under the 3-IN-ONE brand name; and professional spray maintenance products and lubricants for the bike maintenance market under the GT85 brand name. In addition, the company provides automatic toilet bowl cleaners under the 2000 Flushes brand name; aerosol and liquid trigger carpet stain and odor eliminators under the Spot Shot brand; room and rug deodorizers under the Carpet Fresh brand name; carpet and household cleaners, and rug and room deodorizers under the 1001 brand; heavy-duty hand cleaner products under the Lava brand name in the United States, as well as under the Solvol brand name in Australia; and automatic toilet bowl cleaners under the X-14 brand name. It sells its products primarily through warehouse club stores, hardware stores, automotive parts outlets, industrial distributors and suppliers, mass retail and home center stores, value retailers, grocery stores, online retailers, farm supply, sport retailers, and independent bike dealers. WD-40 Company was founded in 1953 and is headquartered in San Diego, California.