Head-To-Head Survey: Grove Collaborative (NYSE:GROV) versus Tokyo Lifestyle (NASDAQ:TKLF)

Grove Collaborative (NYSE:GROV) and Tokyo Lifestyle (NASDAQ:TKLF) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Grove Collaborative and Tokyo Lifestyle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	1	1	0	2.00
Tokyo Lifestyle	1	0	0	0	1.00

Grove Collaborative currently has a consensus price target of $1.60, indicating a potential upside of 23.55%. Given Grove Collaborative’s stronger consensus rating and higher possible upside, equities analysts plainly believe Grove Collaborative is more favorable than Tokyo Lifestyle.

Risk and Volatility

Grove Collaborative has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Tokyo Lifestyle has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Earnings & Valuation

This table compares Grove Collaborative and Tokyo Lifestyle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$173.72 million	0.31	-$11.72 million	($0.33)	-3.92
Tokyo Lifestyle	$210.12 million	0.05	$6.64 million	N/A	N/A

Tokyo Lifestyle has higher revenue and earnings than Grove Collaborative.

Profitability

This table compares Grove Collaborative and Tokyo Lifestyle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grove Collaborative	-6.74%	N/A	-20.79%
Tokyo Lifestyle	N/A	N/A	N/A

Institutional & Insider Ownership

91.6% of Grove Collaborative shares are owned by institutional investors. 29.4% of Grove Collaborative shares are owned by insiders. Comparatively, 75.4% of Tokyo Lifestyle shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Grove Collaborative beats Tokyo Lifestyle on 6 of the 11 factors compared between the two stocks.

About Grove Collaborative

Grove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It offers household, personal care, beauty, and other consumer products through retail channels, third parties, direct-to-consumer platform, and mobile applications, as well as online store. The company is headquartered in San Francisco, California.

About Tokyo Lifestyle

Yoshitsu Co., Ltd engages in the retail and wholesale of beauty, health, and other products. It offers beauty products, such as cosmetics comprising of foundation, powder, concealer, makeup remover, eyeliner, eye shadow, brow powder, brow pencil, mascara, lip gloss, lipstick, and nail polish; skin care products consisting of facial cleanser, whitening products, sun block, moisturizer, facial mask, eye mask, eye gel, and exfoliating; and cosmetic applicators, such as brush, puff, curler, hair iron, and shaver products. The company also provides body care products, such as shampoo, conditioner, and body wash; and fragrance products consisting of perfume and cologne for women and men. In addition, the company provides facial wash, firming lotion, astringent, and moisturizer products for men; and lip balm, lotion, shampoo, soap, and essence oil for children. Further, the company offers OTC drugs for the treatment of common ailments, such as colds, headaches, stomach pain, cough, and eye strains, as well as medical supplies and devices, including bandages, masks, thermometers, disinfectant sprays, eye masks, contact lens, and contact lens cleaners and solutions. Additionally, the company provides vitamins, minerals, fiber supplements, nutritional yeast, dietary products, and other nutritional supplements; bedding and bath products, and car supplies; and food, alcoholic beverages, and miscellaneous products. It directly operates physical stores in Japan and Hong Kong; online stores in Japan, China, and Korea; and franchise stores in the United States, Canada, and the United Kingdom, as well as wholesale customers in Japan, China, the United States, and Canada. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.