Contrasting Grove Collaborative (NYSE:GROV) & Kenvue (NYSE:KVUE)

Kenvue (NYSE:KVUE) and Grove Collaborative (NYSE:GROV) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Valuation & Earnings

This table compares Kenvue and Grove Collaborative”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kenvue	$15.46 billion	2.15	$1.03 billion	$0.75	23.09
Grove Collaborative	$203.43 million	0.26	-$27.42 million	($0.62)	-2.07

Kenvue has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than Kenvue, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kenvue	9.55%	20.02%	7.74%
Grove Collaborative	-12.59%	N/A	-30.45%

Risk and Volatility

Kenvue has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kenvue and Grove Collaborative, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kenvue	0	12	5	1	2.39
Grove Collaborative	1	1	1	0	2.00

Kenvue presently has a consensus price target of $20.23, suggesting a potential upside of 16.82%. Grove Collaborative has a consensus price target of $1.60, suggesting a potential upside of 24.80%. Given Grove Collaborative’s higher probable upside, analysts clearly believe Grove Collaborative is more favorable than Kenvue.

Institutional and Insider Ownership

97.6% of Kenvue shares are owned by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are owned by institutional investors. 0.2% of Kenvue shares are owned by company insiders. Comparatively, 29.4% of Grove Collaborative shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Kenvue beats Grove Collaborative on 12 of the 15 factors compared between the two stocks.

About Kenvue

Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

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.