Head to Head Contrast: Deere & Company (NYSE:DE) & urban-gro (NASDAQ:UGRO)

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

Profitability

This table compares Deere & Company and urban-gro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deere & Company	12.40%	24.39%	5.32%
urban-gro	N/A	N/A	N/A

Valuation and Earnings

This table compares Deere & Company and urban-gro”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deere & Company	$51.72 billion	2.75	$7.10 billion	$20.67	25.36
urban-gro	$71.54 million	0.07	-$25.44 million	($1.12)	-0.37

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

Analyst Recommendations

This is a summary of current ratings and price targets for Deere & Company and urban-gro, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deere & Company	0	12	8	1	2.48
urban-gro	0	0	0	1	4.00

Deere & Company presently has a consensus target price of $515.50, indicating a potential downside of 1.66%. Given Deere & Company’s higher probable upside, equities research analysts plainly believe Deere & Company is more favorable than urban-gro.

Volatility and Risk

Deere & Company has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, urban-gro has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

68.6% of Deere & Company shares are owned by institutional investors. Comparatively, 20.6% of urban-gro shares are owned by institutional investors. 0.3% of Deere & Company shares are owned by company insiders. Comparatively, 26.9% of urban-gro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Deere & Company beats urban-gro on 11 of the 14 factors compared between the two stocks.

About Deere & Company

Deere & Co. engages in the manufacture and distribution of equipment used in agriculture, construction, forestry, and turf care. It operates through the following segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agriculture and Turf segment focuses on the distribution and manufacture of a full line of agriculture and turf equipment and related service parts. The Construction and Forestry segment offers machines and service parts used in construction, earthmoving, road building, material handling and timber harvesting. The Financial Services segment finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment. The company was founded by John Deere in 1837 and is headquartered in Moline, IL.

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.