Critical Comparison: Grove Collaborative (NYSE:GROV) versus Nestle (OTCMKTS:NSRGY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nestle	N/A	N/A	N/A
Grove Collaborative	-11.41%	N/A	-21.21%

Valuation & Earnings

This table compares Nestle and Grove Collaborative”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nestle	$103.78 billion	2.31	$12.36 billion	N/A	N/A
Grove Collaborative	$203.43 million	0.31	-$27.42 million	($0.58)	-2.63

Nestle has higher revenue and earnings than Grove Collaborative.

Volatility and Risk

Nestle has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nestle and Grove Collaborative, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nestle	1	3	0	1	2.20
Grove Collaborative	1	1	1	0	2.00

Nestle presently has a consensus price target of $91.00, indicating a potential downside of 2.37%. Grove Collaborative has a consensus price target of $1.35, indicating a potential downside of 11.48%. Given Nestle’s stronger consensus rating and higher probable upside, equities analysts plainly believe Nestle is more favorable than Grove Collaborative.

Institutional and Insider Ownership

0.6% of Nestle shares are owned by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are owned by institutional investors. 29.4% of Grove Collaborative shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Nestle beats Grove Collaborative on 8 of the 12 factors compared between the two stocks.

About Nestle

Nestlé S.A., together with its subsidiaries, operates as a food and beverage company. The company operates through Zone North America; Zone Europe; Zone Asia, Oceania, and Africa; Zone Latin America; Zone Greater China; Nespresso; and Nestlé Health Science segments. It offers baby foods under the Cerelac, Gerber, Nido, and NaturNes brands; bottled water under the Nestlé Pure Life, Perrier, Vittel, Buxton, Erikli, and S.Pellegrino brands; cereals under the Fitness, Nesquik, cheerios, and Lion Cereals brands; and chocolate and confectionery products under the KitKat, Smarties, Aero, Nestlé Les Recettes de l'Atelier, Milkybar, Baci Perugina, Quality Street, and Fitness brands. The company provides coffee products under the Nescafé, Nespresso, Nescafé Dolce Gusto, Starbucks Coffee At Home, and Blue Bottle Coffee brands; culinary, chilled, and frozen foods under the Maggi, DiGiorno, Thomy, Garden Gourmet, Sweet Earth, Hot Pockets, Stouffer's, Buitoni, Lean, and Life Cuisine brands; dairy products under the Carnation, Nido, Bear, Coffee-Mate, and La Laitière brands; and drinks under the Nesquik, Nestea, Nescafé, and Milo brands. In addition, it offers food service products under the Milo, Nescafé, Maggi, Chef, Nestea, Stouffer's, Chef-Mate, Minor's, and Lean Cuisine brand names; healthcare nutrition products under the Boost, Garden of Life, Nature's Bounty, Persona, Vital Proteins, Solgar, Peptamen, Resource, Vitaflo, Impact, and Compleat brands; ice cream products under the Movenpick, Häagen-Dazs, Nestlé Ice Cream, and Extrême brands; and pet care products under the Purina, ONE, Alpo, Felix, Pro Plan, Cat Chow, Fancy Feast, Bakers, Friskies, Dog Chow, Beneful, and Gourmet brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland.

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.