Direct Comparison: Hydrofarm Holdings Group (NASDAQ:HYFM) vs. Central Garden & Pet (NASDAQ:CENTA)


Hydrofarm Holdings Group (NASDAQ:HYFMget rating) and Central Garden & Pet (NASDAQ:CENTAget rating) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends, and institutional ownership.

Institutional and internal property

63.2% of Hydrofarm Holdings Group shares are owned by institutional investors. Comparatively, 68.7% of Central Garden & Pet shares are owned by institutional investors. 3.3% of Hydrofarm Holdings Group shares are owned by insiders. Comparatively, 20.3% of Central Garden & Pet shares are owned by insiders. Strong institutional ownership is an indication that large fund managers, endowments and hedge funds believe a company is poised for long-term growth.

Cost effectiveness

This table compares the net margins, return on equity and return on assets of Hydrofarm Holdings Group and Central Garden & Pet.

net margins Return on equity Return on assets
Hydrofarm Holdings Group -3.09% 1.44% 1.10%
Central garden and pet 4.48% 12.18% 4.78%

Valuation and Earnings

This table compares the top revenue, earnings per share (EPS), and valuation of Hydrofarm Holdings Group and Central Garden & Pet.

Gross income Price/Sales Ratio Net income earnings per share Rate of earnings on price
Hydrofarm Holdings Group $479.42 million 0.33 $13.42 million ($0.35) -9.94
Central garden and pet $3.30 billion 0.67 $151.75 million $2.74 14.70

Central Garden & Pet has higher revenues and profits than Hydrofarm Holdings Group. Hydrofarm Holdings Group trades at a lower price-earnings ratio than Central Garden & Pet, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Hydrofarm Holdings Group and Central Garden & Pet, as reported by MarketBeat.

sales ratings retention ratings Buy grades Strong purchase ratings Rating Score
Hydrofarm Holdings Group 3 3 2.50
Central garden and pet 1 3.00

Hydrofarm Holdings Group currently has a consensus price target of $16.67, indicating 378.93% upside potential. Central Garden & Pet has a consensus price target of $52.50, indicating 30.31% upside potential. Given the greatest possible advantage of Hydrofarm Holdings Group, research analysts clearly believe that Hydrofarm Holdings Group is more favorable than Central Garden & Pet.

Volatility and risk

Hydrofarm Holdings Group has a beta of 1.91, which suggests that its share price is 91% more volatile than the S&P 500. Comparatively, Central Garden & Pet has a beta of 0.57, which suggests that the its share price is 43% less volatile than the S&P 500.

Summary

Central Garden & Pet outperforms Hydrofarm Holdings Group in 11 of 14 factors compared between the two stocks.

Hydrofarm Holdings Group Company Profile (get rating)

Hydrofarm Holdings Group, Inc., together with its subsidiaries, is engaged in the manufacture and distribution of controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company offers agricultural lighting fixtures, indoor climate control equipment, hydroponics and nutrients, and plant additives used to grow, cultivate and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs in a controlled environment; and distributes CEA equipment and supplies, including grow lighting systems; heating, ventilation and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, coolers and filters; nutrient and fertilizer supply systems; and various growing media made from soil, rockwool, or coconut fiber. It also provides hydroponic systems, such as hydro systems, hydro trays and components, meters and solutions, pumps and irrigation systems, water filtration systems, pots and containers, and tents and tarps; atmospheric control equipment including controllers, monitors and timers, ventilation/air conditioning equipment, air purification equipment and CO2 equipment; and nutrients and additives. The company offers its products under Phantom, PhotoBio, Active Aqua, Active Air, HEAVY 16, House & Garden, Mad Farmer, Roots Organics, Soul, Procision, Grotek, Gaia Green, Innovative Growers Equipment, Quantum, Xtrasun, Digilux, Agrobrite, SunBlaster, Jump Start, Active Eye, Autopilot, Phat, oxyClone and GROW!T. Hydrofarm Holdings Group, Inc. was founded in 1977 and is headquartered in Shoemakersville, Pennsylvania.

Company Profile Central Garden & Pet (get rating)

Central Garden & Pet Company produces and distributes various products for the lawn and garden, and pet supply markets in the United States. It operates through two segments, Pet and Garden. The pet segment provides supplies for dogs and cats, such as dog treats and chews, toys, pet beds and grooming products, training and waste management pads, and pet containment; supplies for aquatic animals, small animals, reptiles and pet birds, including toys, cages and habitats, bedding, food and supplies; household and animal health and insect control products; live fish and products for fish, reptiles and other aquarium pets, such as aquariums, furniture and lighting fixtures, pumps, filters, water conditioners, food and supplements; and products for horses and cattle, as well as outdoor cushions and pillows. This segment sells its products under the Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, Kaytee, K&H Pet Products, Nylabone and Zilla brand names. The Garden segment offers lawn and garden supply products including grass seed; wild bird feed, bird feeders, bird houses and other bird watching accessories; fertilizers; decorative products for outdoor lifestyle; live plants; and weeds and grass, as well as other herbicide, insecticide and pesticide products. This segment sells its lawn and garden supply products under the AMDRO, Ferry-Morse, Pennington, and Sevin brand names, as well as other Bell Nursery, Lilly Miller, and Over-N-Out brands. Central Garden & Pet Company was founded in 1955 and is based in Walnut Creek, California.



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