CEA Industries (NASDAQ:BNC) versus RYTHM (NASDAQ:RYM) Critical Contrast

CEA Industries (NASDAQ:BNC) and RYTHM (NASDAQ:RYM) are both small-cap agriculture, forestry, and fishing companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares CEA Industries and RYTHM”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CEA Industries	$3.28 million	61.08	$120.29 million	$2.73	1.67
RYTHM	$9.68 million	3.79	-$41.75 million	($10.65)	-1.60

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

Analyst Recommendations

This is a summary of current ratings and price targets for CEA Industries and RYTHM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CEA Industries	1	0	0	0	1.00
RYTHM	1	0	0	0	1.00

Risk & Volatility

CEA Industries has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, RYTHM has a beta of 9.87, meaning that its stock price is 887% more volatile than the S&P 500.

Profitability

This table compares CEA Industries and RYTHM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CEA Industries	1,746.98%	218.07%	168.38%
RYTHM	-269.95%	-146.47%	-45.13%

Insider & Institutional Ownership

6.0% of RYTHM shares are owned by institutional investors. 4.8% of CEA Industries shares are owned by company insiders. Comparatively, 2.2% of RYTHM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

CEA Industries beats RYTHM on 8 of the 11 factors compared between the two stocks.

About CEA Industries

CEA Industries Inc. provides technology, engineering, and other services to the controlled environment agriculture (CEA) industry worldwide. It offers floor plans and architectural design for cultivation facilities; licensed mechanical, electrical, and plumbing engineering services for commercial scale environmental control systems that are specific to cultivation facilities; and process cooling systems and other climate control systems. The company also provides air handling equipment and systems; LED lighting; benching and racking solutions for indoor cultivation; automation and control devices, systems, and technologies for environmental, lighting, and climate control applications; and preventive maintenance services for CEA facilities. It serves commercial, as well as state- and provincial-regulated CEA growers. The company was formerly known as Surna Inc. and changed its name to CEA Industries Inc. in November 2021. CEA Industries Inc. was founded in 2006 and is headquartered in Louisville, Colorado.

About RYTHM

Agrify Corporation develops precision hardware and software cultivation and extraction solutions for the cannabis and hemp industry in the United States. The company offers vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and pesticide-free surface protection products. It also provides associated services comprising consulting, engineering, and construction. The company was formerly known as Agrinamics, Inc. and changed its name to Agrify Corporation in September 2019. Agrify Corporation was incorporated in 2016 and is headquartered in Billerica, Massachusetts.