CEA Industries (NASDAQ:CEAD) and RYTHM (NASDAQ:RYM) Financial Survey

CEA Industries (NASDAQ:CEAD) and RYTHM (NASDAQ:RYM) are both small-cap construction companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Insider & Institutional Ownership

21.6% of CEA Industries shares are owned by institutional investors. Comparatively, 6.0% of RYTHM shares are owned by institutional investors. 4.8% of CEA Industries shares are owned by insiders. Comparatively, 2.2% of RYTHM 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 ratings and recommmendations for CEA Industries and RYTHM, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CEA Industries	0	0	0	0	0.00
RYTHM	1	0	0	0	1.00

Risk and Volatility

CEA Industries has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, RYTHM has a beta of 9.83, suggesting that its share price is 883% more volatile than the S&P 500.

Valuation and Earnings

This table compares CEA Industries and RYTHM”s top-line 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	1.96	-$2.91 million	($4.23)	-1.89
RYTHM	$9.68 million	8.79	-$41.75 million	N/A	N/A

CEA Industries has higher earnings, but lower revenue than RYTHM.

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	-118.08%	-27.79%	-24.75%
RYTHM	-424.11%	-185.90%	-72.67%

Summary

CEA Industries beats RYTHM on 6 of the 10 factors compared between the two stocks.

About CEA Industries

CEA Industries Inc. provides environmental control, and other technologies and 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.