Head to Head Survey: Davis Commodities (NASDAQ:DTCK) & Scotts Miracle-Gro (NYSE:SMG)

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

Risk & Volatility

Davis Commodities has a beta of -1.42, meaning that its stock price is 242% less volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Davis Commodities and Scotts Miracle-Gro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Davis Commodities	0	0	0	0	0.00
Scotts Miracle-Gro	0	4	4	0	2.50

Scotts Miracle-Gro has a consensus target price of $69.17, indicating a potential upside of 25.70%. Given Scotts Miracle-Gro’s stronger consensus rating and higher possible upside, analysts plainly believe Scotts Miracle-Gro is more favorable than Davis Commodities.

Insider and Institutional Ownership

81.8% of Davis Commodities shares are owned by institutional investors. Comparatively, 74.1% of Scotts Miracle-Gro shares are owned by institutional investors. 25.4% of Scotts Miracle-Gro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

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

Earnings and Valuation

This table compares Davis Commodities and Scotts Miracle-Gro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Davis Commodities	$132.37 million	0.29	-$3.53 million	N/A	N/A
Scotts Miracle-Gro	$3.55 billion	0.89	-$34.90 million	$0.76	72.40

Davis Commodities has higher earnings, but lower revenue than Scotts Miracle-Gro.

Summary

Scotts Miracle-Gro beats Davis Commodities on 9 of the 12 factors compared between the two stocks.

About Davis Commodities

Davis Commodities Limited, an investment holding company, operates as an agricultural commodity trading company in Asia, Africa, and the Middle East. The company trades in agricultural commodities, including sugar, rice, and oil and fat products under the Maxwill and Taffy brands. It also provides warehouse storage and logistic, as well as agency services. Davis Commodities Limited was founded in 1999 and is headquartered in Singapore. The company operates as a subsidiary of Davis & KT Holdings Pte. Ltd.

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.