Rainbow Coral (OTCMKTS:RBCC) and GrowGeneration (NASDAQ:GRWG) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rainbow Coral	N/A	N/A	N/A
GrowGeneration	-28.33%	-32.51%	-22.75%

Analyst Ratings

This is a summary of current ratings and recommmendations for Rainbow Coral and GrowGeneration, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rainbow Coral	0	0	0	0	0.00
GrowGeneration	0	2	1	0	2.33

GrowGeneration has a consensus target price of $2.33, suggesting a potential upside of 136.89%. Given GrowGeneration’s stronger consensus rating and higher probable upside, analysts plainly believe GrowGeneration is more favorable than Rainbow Coral.

Earnings and Valuation

This table compares Rainbow Coral and GrowGeneration”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rainbow Coral	N/A	N/A	N/A	N/A	N/A
GrowGeneration	$188.87 million	0.31	-$49.51 million	($0.84)	-1.17

Rainbow Coral has higher earnings, but lower revenue than GrowGeneration.

Institutional & Insider Ownership

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

Summary

GrowGeneration beats Rainbow Coral on 6 of the 9 factors compared between the two stocks.

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.

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.