GrowGeneration (NASDAQ:GRWG – Get Free Report) and Valvoline (NYSE:VVV – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares GrowGeneration and Valvoline’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GrowGeneration | -10.07% | -17.44% | -11.52% |
| Valvoline | 5.17% | 65.12% | 7.11% |
Analyst Ratings
This is a breakdown of recent recommendations for GrowGeneration and Valvoline, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GrowGeneration | 1 | 1 | 1 | 0 | 2.00 |
| Valvoline | 0 | 5 | 12 | 0 | 2.71 |
Institutional and Insider Ownership
36.0% of GrowGeneration shares are owned by institutional investors. Comparatively, 96.1% of Valvoline shares are owned by institutional investors. 8.1% of GrowGeneration shares are owned by insiders. Comparatively, 0.7% of Valvoline shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares GrowGeneration and Valvoline”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GrowGeneration | $161.74 million | 0.56 | -$24.05 million | ($0.27) | -5.67 |
| Valvoline | $1.71 billion | 2.28 | $210.70 million | $0.80 | 38.23 |
Valvoline has higher revenue and earnings than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than Valvoline, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
GrowGeneration has a beta of 2.56, indicating that its share price is 156% more volatile than the S&P 500. Comparatively, Valvoline has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Summary
Valvoline beats GrowGeneration on 11 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 Valvoline
Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.
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