The Mosaic (NYSE:MOS) and GrowGeneration (NASDAQ:GRWG) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
69.8% of The Mosaic shares are owned by institutional investors. Comparatively, 51.3% of GrowGeneration shares are owned by institutional investors. 0.5% of The Mosaic shares are owned by insiders. Comparatively, 13.6% of GrowGeneration shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for The Mosaic and GrowGeneration, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Mosaic | 1 | 9 | 9 | 0 | 2.42 |
GrowGeneration | 0 | 3 | 5 | 0 | 2.63 |
The Mosaic presently has a consensus target price of $26.6389, suggesting a potential downside of 15.35%. GrowGeneration has a consensus target price of $49.5714, suggesting a potential downside of 8.24%. Given GrowGeneration's stronger consensus rating and higher probable upside, analysts plainly believe GrowGeneration is more favorable than The Mosaic.
Profitability
This table compares The Mosaic and GrowGeneration's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Mosaic | -13.05% | N/A | N/A |
GrowGeneration | 2.14% | 4.68% | 3.53% |
Volatility and Risk
The Mosaic has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 3.09, meaning that its share price is 209% more volatile than the S&P 500.
Earnings and Valuation
This table compares The Mosaic and GrowGeneration's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Mosaic | $8.91 billion | 1.34 | $-1,067,400,000.00 | $0.19 | 165.63 |
GrowGeneration | $79 million | 40.20 | $1.88 million | $0.10 | 543.20 |
GrowGeneration has lower revenue, but higher earnings than The Mosaic. The Mosaic is trading at a lower price-to-earnings ratio than GrowGeneration, indicating that it is currently the more affordable of the two stocks.
Summary
GrowGeneration beats The Mosaic on 10 of the 14 factors compared between the two stocks.