Contrasting urban-gro (NASDAQ:UGRO) & CNH Industrial (NYSE:CNH)

urban-gro (NASDAQ:UGRO) and CNH Industrial (NYSE:CNH) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.

Volatility and Risk

urban-gro has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, CNH Industrial has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Institutional and Insider Ownership

20.6% of urban-gro shares are held by institutional investors. Comparatively, 59.9% of CNH Industrial shares are held by institutional investors. 26.9% of urban-gro shares are held by company insiders. Comparatively, 1.0% of CNH Industrial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares urban-gro and CNH Industrial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
urban-gro	$71.54 million	0.06	-$25.44 million	($1.12)	-0.29
CNH Industrial	$19.84 billion	0.82	$1.25 billion	$0.82	15.82

CNH Industrial has higher revenue and earnings than urban-gro. urban-gro is trading at a lower price-to-earnings ratio than CNH Industrial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for urban-gro and CNH Industrial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
urban-gro	0	0	0	1	4.00
CNH Industrial	0	6	8	1	2.67

CNH Industrial has a consensus price target of $14.88, indicating a potential upside of 14.76%. Given CNH Industrial’s higher possible upside, analysts clearly believe CNH Industrial is more favorable than urban-gro.

Profitability

This table compares urban-gro and CNH Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
urban-gro	N/A	N/A	N/A
CNH Industrial	5.53%	14.32%	2.56%

Summary

CNH Industrial beats urban-gro on 11 of the 14 factors compared between the two stocks.

About urban-gro

urban-gro, Inc. engages in the designing, engineering, building, and integrating complex environmental equipment systems for indoor controlled environment agriculture (CEA) cultivation and retail facilities in the United States, Canada, and Europe. The company provides architectural design, engineering, and construction services comprising pre-construction, cultivation space programming (CSP), architectural and interior design, engineering, integrated cultivation design, owner's representative/construction management, and general contracting services; and maintenance, training, and support services. It also offers facility and equipment commissioning services; gro-care crop and asset protection services, including training services, equipment maintenance services, asset protection program, and an interactive online operating support system for gro-care and client document delivery and project management; and property condition assessment services. In addition, the company provides integrated equipment systems solutions, such as design, source, and integration of complex environmental equipment systems comprising heating, ventilation, and air conditioning solutions, as well as environmental control, fertigation, irrigation distribution, water treatment, and wastewater reclamation systems; and commercial horticulture lighting solutions, rolling and automated container benching systems, specialty fans, microbial mitigation, and odor reduction systems. Further, it offers value-Added Reselling (VAR) of cultivation equipment systems; and strategic vendor relationships with premier manufacturers. It primarily markets and sells its solutions to clients in the CEA that includes operators and facilitators in the cannabis and produce markets; and commercial sectors comprising food and beverage consumer packaged goods companies, healthcare, higher education, and hospitality. urban-gro, Inc. was founded in 2014 and is based in Lafayette, Colorado.

About CNH Industrial

CNH Industrial NV is an equipment and services company, which develops, manufactures and sells specialized machines and services for the farming and construction industries, and supplies replacement parts and accessories. It operates through the following operating segments: Agriculture, Construction, and Financial Services. The Agriculture segment designs, manufactures, and distributes a full line of farm machinery and implements, including two-wheel and four-wheel drive tractors, crawler tractors, combines, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements and material handling equipment. The Construction segment comprises of a full line of construction equipment including excavators, crawler dozers, graders, wheel loaders, backhoe loaders, skid steer loaders, and compact track loaders. The Financial Services segment offers retail note and lease financing to end-use customers for the purchase of new and used agricultural and construction equipment and components. The company was founded in 1866 and is headquartered in London, the United Kingdom.