GrowGeneration (NASDAQ:GRWG) and Winmark (NASDAQ:WINA) Critical Comparison

Winmark (NASDAQ:WINAGet Free Report) and GrowGeneration (NASDAQ:GRWGGet Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Winmark and GrowGeneration”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Winmark $86.06 million 14.64 $41.65 million $11.02 31.85
GrowGeneration $161.74 million 0.64 -$24.05 million ($0.27) -6.56

Winmark has higher earnings, but lower revenue than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Winmark has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, GrowGeneration has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500.

Institutional and Insider Ownership

73.3% of Winmark shares are owned by institutional investors. Comparatively, 36.0% of GrowGeneration shares are owned by institutional investors. 10.4% of Winmark shares are owned by company insiders. Comparatively, 8.1% of GrowGeneration shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Winmark 47.09% -99.47% 103.54%
GrowGeneration -10.07% -17.44% -11.52%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Winmark and GrowGeneration, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Winmark 0 1 0 0 2.00
GrowGeneration 1 1 1 0 2.00

GrowGeneration has a consensus price target of $2.50, indicating a potential upside of 41.24%. Given GrowGeneration’s higher probable upside, analysts plainly believe GrowGeneration is more favorable than Winmark.

Summary

Winmark beats GrowGeneration on 8 of the 13 factors compared between the two stocks.

About Winmark

(Get Free Report)

Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.

About GrowGeneration

(Get Free Report)

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.

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