Comparing BARK (NYSE:BARK) & GrowGeneration (NASDAQ:GRWG)

BARK (NYSE:BARK) and GrowGeneration (NASDAQ:GRWG) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Risk and Volatility

BARK has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for BARK and GrowGeneration, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BARK	1	2	2	0	2.20
GrowGeneration	1	1	1	0	2.00

BARK presently has a consensus price target of $15.33, suggesting a potential upside of 40.61%. GrowGeneration has a consensus price target of $2.50, suggesting a potential upside of 50.60%. Given GrowGeneration’s higher possible upside, analysts clearly believe GrowGeneration is more favorable than BARK.

Profitability

This table compares BARK and GrowGeneration’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BARK	-8.42%	-35.66%	-14.54%
GrowGeneration	-10.07%	-17.44%	-11.52%

Institutional & Insider Ownership

28.8% of BARK shares are owned by institutional investors. Comparatively, 36.0% of GrowGeneration shares are owned by institutional investors. 14.8% of BARK shares are owned by insiders. Comparatively, 8.1% of GrowGeneration shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares BARK and GrowGeneration”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BARK	$394.84 million	0.25	-$39.01 million	($3.58)	-3.05
GrowGeneration	$161.74 million	0.60	-$24.05 million	($0.27)	-6.15

GrowGeneration has lower revenue, but higher earnings than BARK. GrowGeneration is trading at a lower price-to-earnings ratio than BARK, indicating that it is currently the more affordable of the two stocks.

Summary

GrowGeneration beats BARK on 8 of the 14 factors compared between the two stocks.

About BARK

BARK Inc., a dog-centric company, provides products, services, and content for dogs. It operates in two segments, Direct to Consumer and Commerce. The company serves dogs through monthly subscription services. It is also involved in the design of playstyle-specific toys, satisfying treats, personal meal plans with supplements, and dog-first experiences designed to foster health and happiness of dogs everywhere. In addition, the company offers monthly themed box of toys and treats under the BarkBox and Super Chewer names; personalized meal plans under the BARK Food name; health and wellness products under the BARK Bright name; and dog beds, bowls, collars, harnesses, and leashes under the BARK Home brand. Further, the company sells BARK Home products through BarkShop.com. Additionally, it offers custom collections through online marketplaces, and brick and mortar retailers. The company was formerly known as The Original BARK Company and changed its name to BARK, Inc. in November 2021. BARK Inc. was incorporated in 2011 and is headquartered in New York, New York.

About GrowGeneration

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company engages in the marketing and distribution of nutrients, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Montana, New York, Ohio, Mississippi, Missouri, Arizona, Rhode Island, Florida, Massachusetts, Virginia, New Jersey, and New Mexico, as well as growgeneration.com, an online superstore for cultivators, a wholesale business for resellers, HRG Distribution, and benching, racking, and storage solutions and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.