Head to Head Survey: Rainbow Coral (OTCMKTS:RBCC) versus Hydrofarm Holdings Group (NASDAQ:HYFM)

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

Insider & Institutional Ownership

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

Profitability

This table compares Rainbow Coral and Hydrofarm Holdings Group’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
Hydrofarm Holdings Group	-38.77%	-24.85%	-13.26%

Earnings & Valuation

This table compares Rainbow Coral and Hydrofarm Holdings Group”s top-line 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
Hydrofarm Holdings Group	$190.29 million	0.11	-$66.72 million	($14.92)	-0.29

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

Analyst Ratings

This is a summary of current ratings and target prices for Rainbow Coral and Hydrofarm Holdings Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rainbow Coral	0	0	0	0	0.00
Hydrofarm Holdings Group	0	1	0	0	2.00

Hydrofarm Holdings Group has a consensus target price of $6.50, suggesting a potential upside of 49.77%. Given Hydrofarm Holdings Group’s stronger consensus rating and higher possible upside, analysts plainly 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 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 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.