Contrasting Clorox (NYSE:CLX) and Grove Collaborative (NYSE:GROV)

Clorox (NYSE:CLX) and Grove Collaborative (NYSE:GROV) are both consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Clorox has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Insider & Institutional Ownership

78.5% of Clorox shares are held by institutional investors. Comparatively, 91.6% of Grove Collaborative shares are held by institutional investors. 0.6% of Clorox shares are held by insiders. Comparatively, 29.4% of Grove Collaborative shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Clorox and Grove Collaborative”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clorox	$7.10 billion	2.02	$810.00 million	$6.37	18.47
Grove Collaborative	$203.43 million	0.31	-$27.42 million	($0.62)	-2.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clorox	11.17%	299.67%	14.62%
Grove Collaborative	-12.59%	N/A	-30.45%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Clorox and Grove Collaborative, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clorox	4	11	1	0	1.81
Grove Collaborative	1	1	1	0	2.00

Clorox presently has a consensus price target of $117.00, suggesting a potential downside of 0.58%. Grove Collaborative has a consensus price target of $1.60, suggesting a potential upside of 5.96%. Given Grove Collaborative’s stronger consensus rating and higher possible upside, analysts plainly believe Grove Collaborative is more favorable than Clorox.

Summary

Clorox beats Grove Collaborative on 8 of the 13 factors compared between the two stocks.

About Clorox

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands. It sells its products primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet, and military stores; third-party and owned e-commerce channels; and distributors, as well as a direct sales force The Clorox Company was founded in 1913 and is headquartered in Oakland, California.

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.