GrowGeneration (NASDAQ:GRWG – Get Rating) and iPower (NYSE:IPW – Get Rating) are both small-cap consumer cyclical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
41.9% of GrowGeneration shares are owned by institutional investors. Comparatively, 2.9% of iPower shares are owned by institutional investors. 4.6% of GrowGeneration shares are owned by insiders. Comparatively, 27.2% of iPower shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares GrowGeneration and iPower’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GrowGeneration | $278.17 million | 0.71 | -$163.75 million | ($2.71) | -1.19 |
| iPower | $87.62 million | 0.40 | $1.52 million | ($0.35) | -3.74 |
Analyst Recommendations
This is a breakdown of current ratings for GrowGeneration and iPower, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GrowGeneration | 0 | 2 | 1 | 0 | 2.33 |
| iPower | 0 | 0 | 0 | 0 | N/A |
GrowGeneration presently has a consensus target price of $4.26, indicating a potential upside of 31.97%. iPower has a consensus target price of $3.00, indicating a potential upside of 129.01%. Given iPower’s higher possible upside, analysts plainly believe iPower is more favorable than GrowGeneration.
Profitability
This table compares GrowGeneration and iPower’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GrowGeneration | -65.04% | -16.49% | -12.28% |
| iPower | -11.81% | -26.64% | -10.53% |
Risk and Volatility
GrowGeneration has a beta of 3.1, meaning that its share price is 210% more volatile than the S&P 500. Comparatively, iPower has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500.
Summary
GrowGeneration beats iPower on 7 of the 13 factors compared between the two stocks.
About GrowGeneration
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. The company engages in the marketing and distribution of nutrients, growing media, lighting, environmental control systems, vertical benching, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Mississippi, Missouri, Arizona, Rhode Island, Florida, Massachusetts, Virginia, New Jersey, and New Mexico, as well as growgeneration.com, an online superstore for cultivators, a wholesale business for resellers, and HRG Distribution and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.
About iPower
iPower Inc. operates as an online retailer and supplier of hydroponics equipment and accessories for commercial businesses and individuals in the United States. It offers advanced indoor and greenhouse grow-light systems, ventilation systems, activated carbon filters, nutrients, growing media, hydroponic water-resistant grow tents, trimming machines, pumps, and accessories for hydroponic gardening; general gardening products, including environmental sensors and controls; and home products, which comprise commercial fans, floor and wall fans, storage and shelving units, and chairs. iPower Inc. sells its products under the iPower and Simple Deluxe brand names through Zenhydro.com and various third-party online platforms. The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020. iPower Inc. was incorporated in 2018 and is headquartered in Duarte, California.
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