Critical Contrast: Bunge Global (NYSE:BG) vs. GrowGeneration (NASDAQ:GRWG)

Bunge Global (NYSE:BG) and GrowGeneration (NASDAQ:GRWG) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Earnings & Valuation

This table compares Bunge Global and GrowGeneration”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bunge Global	$53.11 billion	0.19	$1.14 billion	$7.88	9.45
GrowGeneration	$188.87 million	0.32	-$49.51 million	($0.84)	-1.19

Bunge Global has higher revenue and earnings than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than Bunge Global, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Bunge Global and GrowGeneration, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bunge Global	0	3	2	0	2.40
GrowGeneration	0	3	1	0	2.25

Bunge Global presently has a consensus price target of $81.60, indicating a potential upside of 9.59%. GrowGeneration has a consensus price target of $2.38, indicating a potential upside of 137.50%. Given GrowGeneration’s higher possible upside, analysts plainly believe GrowGeneration is more favorable than Bunge Global.

Profitability

This table compares Bunge Global and GrowGeneration’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bunge Global	2.13%	9.98%	4.40%
GrowGeneration	-28.33%	-32.51%	-22.75%

Insider & Institutional Ownership

86.2% of Bunge Global shares are owned by institutional investors. Comparatively, 36.0% of GrowGeneration shares are owned by institutional investors. 0.8% of Bunge Global shares are owned by company insiders. Comparatively, 7.6% of GrowGeneration shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Bunge Global has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 3.32, suggesting that its stock price is 232% more volatile than the S&P 500.

Summary

Bunge Global beats GrowGeneration on 10 of the 14 factors compared between the two stocks.

About Bunge Global

Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.

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, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor growing products. It operates a chain of stores in California, Colorado, Michigan, Maine, Oklahoma, Oregon, Washington, Montana, New York, Ohio, 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, HRG Distribution, and benching, racking, and storage solutions and MMI. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.