Critical Review: Grow Solutions (OTCMKTS:GRSO) & Traeger (NYSE:COOK)

Grow Solutions (OTCMKTS:GRSO) and Traeger (NYSE:COOK) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Grow Solutions and Traeger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grow Solutions	N/A	N/A	N/A	N/A	N/A
Traeger	$559.52 million	0.28	-$115.18 million	($41.92)	-1.36

Grow Solutions has higher earnings, but lower revenue than Traeger.

Analyst Ratings

This is a summary of current ratings and price targets for Grow Solutions and Traeger, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grow Solutions	0	0	0	0	0.00
Traeger	1	5	1	0	2.00

Traeger has a consensus target price of $50.08, suggesting a potential downside of 11.83%. Given Grow Solutions’ higher possible upside, equities analysts plainly believe Grow Solutions is more favorable than Traeger.

Profitability

This table compares Grow Solutions and Traeger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grow Solutions	N/A	N/A	N/A
Traeger	-21.84%	-13.76%	-3.95%

Institutional & Insider Ownership

46.8% of Traeger shares are held by institutional investors. 16.1% of Traeger 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 and Risk

Grow Solutions has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Traeger has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Summary

Traeger beats Grow Solutions on 6 of the 10 factors compared between the two stocks.

About Grow Solutions

Grow Solutions Holdings, Inc. provides products and services to the regulated legal cannabis industry in the United States and internationally. Its operations focus on the retail sale and distribution of indoor and outdoor garden supplies and grow equipment, including for the legal growing of cannabis. The company also provides consulting services that include design and construction to approved and licensed legal cannabis operators, as well as assistance with licensure and related applications for legal cannabis operators. In addition, it designs and manufactures vaporizers, extraction presses, quartz accessories, and storage solutions which are used to sale in tobacco stores, smoke shops, and cannabis dispensaries. Grow Solutions Holdings, Inc. was founded in 2014 and is based in Denver, Colorado.

About Traeger

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.