GrowGeneration (NASDAQ:GRWG – Get Free Report) and Urban Outfitters (NASDAQ:URBN – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.
Risk & Volatility
GrowGeneration has a beta of 2.54, indicating that its share price is 154% more volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.
Institutional and Insider Ownership
36.0% of GrowGeneration shares are owned by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are owned by institutional investors. 8.1% of GrowGeneration shares are owned by insiders. Comparatively, 32.1% of Urban Outfitters shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares GrowGeneration and Urban Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GrowGeneration | -10.07% | -17.44% | -11.52% |
| Urban Outfitters | 8.79% | 18.64% | 10.34% |
Valuation and Earnings
This table compares GrowGeneration and Urban Outfitters”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GrowGeneration | $166.68 million | 0.51 | -$24.05 million | ($0.27) | -5.35 |
| Urban Outfitters | $6.47 billion | 1.16 | $464.92 million | $6.41 | 13.65 |
Urban Outfitters has higher revenue and earnings than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for GrowGeneration and Urban Outfitters, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GrowGeneration | 1 | 1 | 1 | 0 | 2.00 |
| Urban Outfitters | 0 | 7 | 9 | 0 | 2.56 |
GrowGeneration currently has a consensus target price of $2.50, indicating a potential upside of 73.01%. Urban Outfitters has a consensus target price of $90.54, indicating a potential upside of 3.50%. Given GrowGeneration’s higher probable upside, research analysts plainly believe GrowGeneration is more favorable than Urban Outfitters.
Summary
Urban Outfitters beats GrowGeneration on 12 of the 14 factors compared between the two stocks.
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.
About Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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