Analyzing Procter & Gamble (NYSE:PG) and Grove Collaborative (NYSE:GROV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Procter & Gamble	18.95%	32.69%	13.49%
Grove Collaborative	-11.41%	-6,372.67%	-21.21%

Insider and Institutional Ownership

65.8% of Procter & Gamble shares are owned by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are owned by institutional investors. 0.2% of Procter & Gamble shares are owned by insiders. Comparatively, 29.4% of Grove Collaborative shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Procter & Gamble and Grove Collaborative”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Procter & Gamble	$84.28 billion	4.26	$15.97 billion	$6.51	23.57
Grove Collaborative	$203.43 million	0.30	-$27.42 million	($0.58)	-2.56

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Procter & Gamble and Grove Collaborative, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Procter & Gamble	0	8	11	1	2.65
Grove Collaborative	0	1	1	0	2.50

Procter & Gamble currently has a consensus price target of $173.68, suggesting a potential upside of 13.21%. Grove Collaborative has a consensus price target of $1.35, suggesting a potential downside of 9.09%. Given Procter & Gamble’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Procter & Gamble is more favorable than Grove Collaborative.

Risk & Volatility

Procter & Gamble has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Summary

Procter & Gamble beats Grove Collaborative on 12 of the 15 factors compared between the two stocks.

About Procter & Gamble

Procter & Gamble Co. engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances. The Health Care segment includes oral care products like toothbrushes, toothpaste, and personal health care such as gastrointestinal, rapid diagnostics, respiratory, and vitamins, minerals, and supplements. The Fabric and Home care segment consists of fabric enhancers, laundry additives and detergents, and air, dish, and surface care. The Baby, Feminine and Family Care segment sells baby wipes, diapers, and pants, adult incontinence, feminine care, paper towels, tissues, and toilet paper. The company was founded by William Procter and James Gamble in 1837 and is headquartered in Cincinnati, OH.

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.