Analyzing Grove Collaborative (NYSE:GROV) and Newell Brands (NASDAQ:NWL)

Grove Collaborative (NYSE:GROV) and Newell Brands (NASDAQ:NWL) are both small-cap consumer staples companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

91.6% of Grove Collaborative shares are held by institutional investors. Comparatively, 92.5% of Newell Brands shares are held by institutional investors. 30.3% of Grove Collaborative shares are held by company insiders. Comparatively, 1.6% of Newell Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Grove Collaborative has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Newell Brands has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Profitability

This table compares Grove Collaborative and Newell Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grove Collaborative	-5.52%	N/A	-16.95%
Newell Brands	-3.91%	8.89%	2.03%

Valuation & Earnings

This table compares Grove Collaborative and Newell Brands”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$166.39 million	0.31	-$11.72 million	($0.26)	-4.75
Newell Brands	$7.19 billion	0.22	-$285.00 million	($0.67)	-5.43

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Grove Collaborative and Newell Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	0	1	0	2.00
Newell Brands	2	5	3	0	2.10

Grove Collaborative currently has a consensus target price of $2.00, indicating a potential upside of 62.07%. Newell Brands has a consensus target price of $4.94, indicating a potential upside of 35.84%. Given Grove Collaborative’s higher probable upside, equities analysts plainly believe Grove Collaborative is more favorable than Newell Brands.

Summary

Newell Brands beats Grove Collaborative on 8 of the 14 factors compared between the two stocks.

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.

About Newell Brands

Newell Brands Inc. engages in the design, manufacture, sourcing, and distribution of consumer and commercial products worldwide. The company operates in three segments: Home and Commercial Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solution products under the Rubbermaid, Rubbermaid Commercial Products, Mapa, and Spontex brands; closet and garage organization products; hygiene systems and material handling solutions; household products, such as kitchen appliances under the Crockpot, Mr. Coffee, Oster, and Sunbeam brands; small appliances under the Breville brand name in Europe; food and home storage products under the FoodSaver, Rubbermaid, Ball, and Sistema brands; fresh preserving products; vacuum sealing products; and gourmet cookware, bakeware, and cutlery under the Calphalon brand; and home fragrance products under the WoodWick and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based products; labeling solutions; and baby gear and infant care products under the Dymo, Elmer's, EXPO, Graco, NUK, Paper Mate, Parker, and Sharpie brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products, inlcuding technical apparel and on-the-go beverageware under the Campingaz, Coleman, Contigo, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, commercial products distributors, specialty retailers, office superstores and supply stores, contract stationers, e-commerce retailers, and sporting goods, as well as direct to consumers online, select contract customers, and other professional customers. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.