Procter & Gamble (NYSE:PG) and Grove Collaborative (NYSE:GROV) Head-To-Head Review

Procter & Gamble (NYSE:PG) and Grove Collaborative (NYSE:GROV) are both consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Procter & Gamble and Grove Collaborative”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	4.25	$15.97 billion	$6.51	23.53
Grove Collaborative	$203.43 million	0.31	-$27.42 million	($0.58)	-2.61

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

Insider and Institutional Ownership

65.8% of Procter & Gamble shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 0.2% of Procter & Gamble shares are held by insiders. Comparatively, 29.4% of Grove Collaborative 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Procter & Gamble and Grove Collaborative, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	8	10	1	2.63
Grove Collaborative	0	1	1	0	2.50

Procter & Gamble presently has a consensus price target of $173.94, indicating a potential upside of 13.57%. Grove Collaborative has a consensus price target of $1.35, indicating a potential downside of 10.89%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, analysts plainly believe Procter & Gamble is more favorable than Grove Collaborative.

Volatility and Risk

Procter & Gamble has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Profitability

This table compares Procter & Gamble and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.95%	32.69%	13.49%
Grove Collaborative	-11.41%	-6,372.67%	-21.21%

Summary

Procter & Gamble beats Grove Collaborative on 12 of the 15 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

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.