Middleby (NASDAQ:MIDD) & Hydrofarm Holdings Group (NASDAQ:HYFM) Head to Head Comparison

Middleby (NASDAQ:MIDD) and Hydrofarm Holdings Group (NASDAQ:HYFM) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Middleby and Hydrofarm Holdings Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middleby	-13.22%	17.44%	7.66%
Hydrofarm Holdings Group	-267.20%	-500.33%	-159.25%

Valuation & Earnings

This table compares Middleby and Hydrofarm Holdings Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middleby	$3.20 billion	1.55	-$277.73 million	($9.26)	-11.82
Hydrofarm Holdings Group	$134.25 million	0.03	-$289.79 million	($60.70)	-0.02

Middleby has higher revenue and earnings than Hydrofarm Holdings Group. Middleby is trading at a lower price-to-earnings ratio than Hydrofarm Holdings Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Middleby has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Hydrofarm Holdings Group has a beta of 2.43, suggesting that its share price is 143% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Middleby and Hydrofarm Holdings Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middleby	2	2	5	0	2.33
Hydrofarm Holdings Group	1	0	0	0	1.00

Middleby presently has a consensus price target of $160.43, suggesting a potential upside of 46.62%. Given Middleby’s stronger consensus rating and higher probable upside, equities analysts clearly believe Middleby is more favorable than Hydrofarm Holdings Group.

Institutional and Insider Ownership

98.5% of Middleby shares are held by institutional investors. Comparatively, 26.6% of Hydrofarm Holdings Group shares are held by institutional investors. 9.7% of Middleby shares are held by insiders. Comparatively, 14.9% of Hydrofarm Holdings Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Middleby beats Hydrofarm Holdings Group on 11 of the 14 factors compared between the two stocks.

About Middleby

The Middleby Corporation designs, markets, manufactures, distributes, and services foodservice, food processing, and residential kitchen equipment worldwide. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, and rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment; and fry dispensers, bottle filling and canning equipment, IoT solutions, and controls development and manufacturing. The company's Food Processing Equipment Group segment provides batch, baking, proofing, conveyor belt, and continuous processing ovens; frying and automated thermal processing systems; tumblers, massagers, grinders, slicers, reduction and emulsion systems, mixers, and blenders; battering, breading, and seeding equipment; water cutting systems, food presses, food suspension equipment, filling and depositing solutions, and forming equipment; and automated washing systems, auto-guided vehicles, food safety, food handling, freezing, and defrosting and packaging equipment. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, mixers, rotisseries, and ventilation and outdoor cooking equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The company was founded in 1888 and is based in Elgin, Illinois.

About Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various growing media typically made from soil, peat, rock wool or coconut fiber, and others. The company offers its products to specialty hydroponic retailers, commercial resellers and greenhouse builders, garden centers, hardware stores, and e-commerce retailers under the Active Air, Active Aqua, Aurora Peat Products, HEAVY 16, House & Garden, Gaia Green, Grotek, Innovative Growers Equipment, Mad Farmer, Phantom, PHOTOBIO, Procision, Roots Organics, Soul, and SunBlaster brands. It serves its products through a range of commercial and home gardening equipment and supplies retailers. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.