Contrasting Scotts Miracle-Gro (NYSE:SMG) and Forafric Global (NASDAQ:AFRI)

Scotts Miracle-Gro (NYSE:SMG) and Forafric Global (NASDAQ:AFRI) are both consumer staples companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Profitability

This table compares Scotts Miracle-Gro and Forafric Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scotts Miracle-Gro	1.54%	-60.46%	6.35%
Forafric Global	N/A	N/A	N/A

Valuation and Earnings

This table compares Scotts Miracle-Gro and Forafric Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scotts Miracle-Gro	$3.55 billion	0.94	-$34.90 million	$0.76	76.06
Forafric Global	$274.22 million	0.85	-$24.33 million	N/A	N/A

Forafric Global has lower revenue, but higher earnings than Scotts Miracle-Gro.

Volatility and Risk

Scotts Miracle-Gro has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500. Comparatively, Forafric Global has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Scotts Miracle-Gro and Forafric Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scotts Miracle-Gro	0	4	4	0	2.50
Forafric Global	1	0	0	0	1.00

Scotts Miracle-Gro presently has a consensus price target of $69.17, indicating a potential upside of 19.66%. Given Scotts Miracle-Gro’s stronger consensus rating and higher probable upside, research analysts plainly believe Scotts Miracle-Gro is more favorable than Forafric Global.

Institutional and Insider Ownership

74.1% of Scotts Miracle-Gro shares are owned by institutional investors. Comparatively, 5.5% of Forafric Global shares are owned by institutional investors. 25.4% of Scotts Miracle-Gro shares are owned by company insiders. Comparatively, 13.5% of Forafric Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Scotts Miracle-Gro beats Forafric Global on 10 of the 12 factors compared between the two stocks.

About Scotts Miracle-Gro

The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other. The company provides lawn care products, comprising lawn fertilizers, grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components for use in hydroponic and indoor gardening applications; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick'R Lawn, GrubEx, EdgeGuard, Handy Green II, Miracle-Gro, LiquaFeed, Shake N Feed, Hyponex, Earthgro, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, EcoScraps, Mother Earth, Botanicare, General Hydroponics, Cyco, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

About Forafric Global

Forafric Global PLC engages in the purchase, storage, transport, processing, and sale of agricultural commodities and commodity products in Morocco, Burkina, Mali, Angola, and internationally. The company provides wheat flours and semolina; and secondary processing products, such as pasta and couscous under the TRIA and MayMouna brand names. It serves wholesale foods manufacturers and distributors. The company also exports its products to approximately 45 countries. Forafric Global PLC was founded in 1926 and is headquartered in Gibraltar.