Contrasting Rainbow Coral (OTCMKTS:RBCC) and Hydrofarm Holdings Group (NASDAQ:HYFM)

Hydrofarm Holdings Group (NASDAQ:HYFM) and Rainbow Coral (OTCMKTS:RBCC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Profitability

This table compares Hydrofarm Holdings Group and Rainbow Coral’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydrofarm Holdings Group	-38.77%	-24.85%	-13.26%
Rainbow Coral	N/A	N/A	N/A

Insider & Institutional Ownership

26.6% of Hydrofarm Holdings Group shares are held by institutional investors. 6.9% of Hydrofarm Holdings Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Hydrofarm Holdings Group and Rainbow Coral”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hydrofarm Holdings Group	$190.29 million	0.10	-$66.72 million	($14.92)	-0.26
Rainbow Coral	N/A	N/A	N/A	N/A	N/A

Rainbow Coral has lower revenue, but higher earnings than Hydrofarm Holdings Group.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hydrofarm Holdings Group and Rainbow Coral, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydrofarm Holdings Group	0	2	0	0	2.00
Rainbow Coral	0	0	0	0	0.00

Hydrofarm Holdings Group presently has a consensus target price of $7.00, suggesting a potential upside of 77.66%. Given Hydrofarm Holdings Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Hydrofarm Holdings Group is more favorable than Rainbow Coral.

Summary

Hydrofarm Holdings Group beats Rainbow Coral on 5 of the 8 factors compared between the two stocks.

About Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various growing media typically made from soil, peat, rock wool or coconut fiber, and others. The company offers its products to specialty hydroponic retailers, commercial resellers and greenhouse builders, garden centers, hardware stores, and e-commerce retailers under the Active Air, Active Aqua, Aurora Peat Products, HEAVY 16, House & Garden, Gaia Green, Grotek, Innovative Growers Equipment, Mad Farmer, Phantom, PHOTOBIO, Procision, Roots Organics, Soul, and SunBlaster brands. It serves its products through a range of commercial and home gardening equipment and supplies retailers. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.

About Rainbow Coral

Rainbow Coral Corp. engages in the operation of retail fish store and coral propagation business in the United States. The company operates through Aquarium and Aquarium Supplies, and Medical Technology segments. The company, through its subsidiary, Rainbow Biosciences, LLC, focuses on researching in the bioscience markets. Rainbow Coral Corp. was founded in 2010 and is based in Henderson, Nevada. Rainbow Coral Corp. operates as a subsidiary of Essen Enterprises, Inc.