urban-gro (NASDAQ:UGRO – Get Free Report) and BlueLinx (NYSE:BXC – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Institutional and Insider Ownership
20.6% of urban-gro shares are held by institutional investors. Comparatively, 90.8% of BlueLinx shares are held by institutional investors. 4.4% of urban-gro shares are held by company insiders. Comparatively, 3.6% of BlueLinx shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares urban-gro and BlueLinx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| urban-gro | -82.11% | -118.44% | -33.76% |
| BlueLinx | -0.06% | 0.13% | 0.05% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| urban-gro | 1 | 0 | 0 | 0 | 1.00 |
| BlueLinx | 1 | 3 | 1 | 0 | 2.00 |
BlueLinx has a consensus target price of $83.50, indicating a potential upside of 17.74%. Given BlueLinx’s stronger consensus rating and higher possible upside, analysts plainly believe BlueLinx is more favorable than urban-gro.
Risk & Volatility
urban-gro has a beta of -2.91, indicating that its stock price is 391% less volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.
Earnings and Valuation
This table compares urban-gro and BlueLinx”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| urban-gro | $17.40 million | 0.01 | -$22.10 million | ($27.87) | -0.00 |
| BlueLinx | $2.95 billion | 0.19 | $220,000.00 | ($0.25) | -283.67 |
BlueLinx has higher revenue and earnings than urban-gro. BlueLinx is trading at a lower price-to-earnings ratio than urban-gro, indicating that it is currently the more affordable of the two stocks.
Summary
BlueLinx beats urban-gro on 12 of the 14 factors compared between the two stocks.
About urban-gro
urban-gro, Inc. engages in the designing, engineering, building, and integrating complex environmental equipment systems for indoor controlled environment agriculture (CEA) cultivation and retail facilities in the United States, Canada, and Europe. The company provides architectural design, engineering, and construction services comprising pre-construction, cultivation space programming (CSP), architectural and interior design, engineering, integrated cultivation design, owner's representative/construction management, and general contracting services; and maintenance, training, and support services. It also offers facility and equipment commissioning services; gro-care crop and asset protection services, including training services, equipment maintenance services, asset protection program, and an interactive online operating support system for gro-care and client document delivery and project management; and property condition assessment services. In addition, the company provides integrated equipment systems solutions, such as design, source, and integration of complex environmental equipment systems comprising heating, ventilation, and air conditioning solutions, as well as environmental control, fertigation, irrigation distribution, water treatment, and wastewater reclamation systems; and commercial horticulture lighting solutions, rolling and automated container benching systems, specialty fans, microbial mitigation, and odor reduction systems. Further, it offers value-Added Reselling (VAR) of cultivation equipment systems; and strategic vendor relationships with premier manufacturers. It primarily markets and sells its solutions to clients in the CEA that includes operators and facilitators in the cannabis and produce markets; and commercial sectors comprising food and beverage consumer packaged goods companies, healthcare, higher education, and hospitality. urban-gro, Inc. was founded in 2014 and is based in Lafayette, Colorado.
About BlueLinx
BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.
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