GrowGeneration (NASDAQ:GRWG) and The Toro (NYSE:TTC) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.
This is a breakdown of current recommendations for GrowGeneration and The Toro, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares GrowGeneration and The Toro’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
37.2% of GrowGeneration shares are held by institutional investors. Comparatively, 81.8% of The Toro shares are held by institutional investors. 13.6% of GrowGeneration shares are held by insiders. Comparatively, 1.8% of The Toro shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares GrowGeneration and The Toro’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GrowGeneration||$79.00 million||13.87||$1.88 million||$0.10||229.80|
|The Toro||$3.14 billion||2.97||$273.98 million||$3.00||28.93|
The Toro has higher revenue and earnings than GrowGeneration. The Toro is trading at a lower price-to-earnings ratio than GrowGeneration, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
GrowGeneration has a beta of 2.29, indicating that its share price is 129% more volatile than the S&P 500. Comparatively, The Toro has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
The Toro beats GrowGeneration on 8 of the 14 factors compared between the two stocks.
GrowGeneration Company Profile
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of horticultural, organics, and lighting and hydroponics products, including lighting fixtures, nutrients, seeds and growing media, systems, trays, fans, filters, humidifiers and dehumidifiers, timers, instruments, water pumps, irrigation supplies, and hand tools. The company also operates GrowGen.Pro, an online e-commerce store. The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines. As of March 27, 2020, it operated a chain of 27 retail and commercial hydroponic/gardening centers, including 5 locations in Colorado, 4 locations in California, 4 locations in Michigan, 2 locations in Nevada, 1 location in Washington, 1 location in Oregon, 4 locations in Oklahoma, 1 location in Rhode Island, 3 locations in Maine, 1 location in Florida, 1 distribution center in California, and an online e-commerce store. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is headquartered in Denver, Colorado.
The Toro Company Profile
The Toro Company designs, manufactures, and markets professional and residential equipment worldwide. The company's Professional segment offers turf and landscape equipment products, including sports fields and grounds maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, rental and specialty construction equipment, and other maintenance equipment; and snow and ice management equipment, such as snowplows, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. It also provides irrigation products comprising sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and agricultural irrigation system drip tape and hose products, as well as professionally installed lighting products through distributors and landscape contractors. This segment sells its products primarily through a network of distributors and dealers to professional users engaged in maintaining golf courses, sports fields, municipal properties, agricultural fields, residential and commercial landscapes, and removing snow and ice, as well as directly to government customers, rental companies, and retailers. Its Residential segment provides walk power mowers, riding mowers, snow throwers, replacement parts, and home solution products that include trimmers, blowers, blower-vacuums, and underground and hose-end retail irrigation products. This segment sells its products to homeowners through a network of distributors and dealers; and various home centers, hardware retailers, and mass retailers, as well as online. The Toro Company was founded in 1914 and is headquartered in Bloomington, Minnesota.
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