Analyzing Olaplex (NASDAQ:OLPX) & Grow Solutions (OTCMKTS:GRSO)

Olaplex (NASDAQ:OLPX) and Grow Solutions (OTCMKTS:GRSO) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Valuation & Earnings

This table compares Olaplex and Grow Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olaplex	$422.67 million	1.74	$19.52 million	N/A	N/A
Grow Solutions	N/A	N/A	N/A	N/A	N/A

Olaplex has higher revenue and earnings than Grow Solutions.

Profitability

This table compares Olaplex and Grow Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olaplex	-0.30%	3.32%	1.71%
Grow Solutions	N/A	N/A	N/A

Risk & Volatility

Olaplex has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, Grow Solutions has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Olaplex and Grow Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olaplex	1	3	1	0	2.00
Grow Solutions	0	0	0	0	0.00

Olaplex currently has a consensus price target of $1.88, suggesting a potential upside of 70.45%. Given Olaplex’s stronger consensus rating and higher probable upside, equities analysts clearly believe Olaplex is more favorable than Grow Solutions.

Insider & Institutional Ownership

87.4% of Olaplex shares are held by institutional investors. 4.3% of Olaplex shares are held 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

Olaplex beats Grow Solutions on 9 of the 10 factors compared between the two stocks.

About Olaplex

Olaplex Holdings, Inc. develops, manufactures, and sells hair care products in the United States and internationally. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair, as well as oil, moisture mask, and nourishing hair serum. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company distributes its products through professional distributors in salons, directly to retailers for sale in their physical stores, e-commerce sites, and its website, Olaplex.com, as well as third party e-commerce platforms. The company was founded in 2014 and is based in Santa Barbara, California.

About Grow Solutions

Grow Solutions Holdings, Inc. provides products and services to the regulated legal cannabis industry in the United States and internationally. Its operations focus on the retail sale and distribution of indoor and outdoor garden supplies and grow equipment, including for the legal growing of cannabis. The company also provides consulting services that include design and construction to approved and licensed legal cannabis operators, as well as assistance with licensure and related applications for legal cannabis operators. In addition, it designs and manufactures vaporizers, extraction presses, quartz accessories, and storage solutions which are used to sale in tobacco stores, smoke shops, and cannabis dispensaries. Grow Solutions Holdings, Inc. was founded in 2014 and is based in Denver, Colorado.