GigaCloud Technology (NASDAQ:GCT – Get Free Report) and Grove Collaborative (NYSE:GROV – Get Free Report) are both small-cap business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Earnings and Valuation
This table compares GigaCloud Technology and Grove Collaborative’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GigaCloud Technology | $490.07 million | 0.75 | $23.97 million | $0.86 | 10.56 |
| Grove Collaborative | $321.53 million | 0.21 | -$87.71 million | ($5.85) | -0.33 |
GigaCloud Technology has higher revenue and earnings than Grove Collaborative. Grove Collaborative is trading at a lower price-to-earnings ratio than GigaCloud Technology, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| GigaCloud Technology | 6.96% | 18.02% | 8.40% |
| Grove Collaborative | -17.65% | -423.09% | -38.75% |
Insider & Institutional Ownership
0.4% of GigaCloud Technology shares are owned by institutional investors. 45.3% of GigaCloud Technology shares are owned by company insiders. Comparatively, 8.7% of Grove Collaborative shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for GigaCloud Technology and Grove Collaborative, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GigaCloud Technology | 0 | 0 | 3 | 0 | 3.00 |
| Grove Collaborative | 0 | 0 | 2 | 0 | 3.00 |
GigaCloud Technology presently has a consensus target price of $19.50, suggesting a potential upside of 114.76%. Grove Collaborative has a consensus target price of $12.50, suggesting a potential upside of 547.67%. Given Grove Collaborative’s higher probable upside, analysts clearly believe Grove Collaborative is more favorable than GigaCloud Technology.
Summary
GigaCloud Technology beats Grove Collaborative on 11 of the 12 factors compared between the two stocks.
About GigaCloud Technology
GigaCloud Technology Inc. provides end-to-end B2B ecommerce solutions for large parcel merchandise. Its marketplace connects manufacturers primarily in Asia with resellers in the United States, Asia, and Europe to execute cross-border transactions across furniture, home appliance, fitness equipment, and other large parcel categories. The company was formerly known as Oriental Standard Human Resources Holdings Limited and changed its name to GigaCloud Technology Inc. in February 2021. GigaCloud Technology Inc. was founded in 2006 and is headquartered in Walnut, California.
About Grove Collaborative
Grove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It offers household, personal care, beauty, and other consumer products through retail channels, third parties, direct-to-consumer platform, and mobile applications, as well as online store. The company is headquartered in San Francisco, California.
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