Analyzing Grove Collaborative (NYSE:GROV) and BBB Foods (NYSE:TBBB)

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

Volatility and Risk

Grove Collaborative has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, BBB Foods has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.

Profitability

This table compares Grove Collaborative and BBB Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grove Collaborative	-5.52%	N/A	-16.95%
BBB Foods	-3.95%	-79.86%	-11.65%

Valuation & Earnings

This table compares Grove Collaborative and BBB Foods”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grove Collaborative	$173.72 million	0.30	-$11.72 million	($0.26)	-4.79
BBB Foods	$4.08 billion	1.22	-$148.23 million	($1.55)	-27.11

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

Analyst Recommendations

This is a summary of recent recommendations for Grove Collaborative and BBB Foods, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grove Collaborative	1	0	1	0	2.00
BBB Foods	2	2	5	0	2.33

Grove Collaborative currently has a consensus price target of $2.00, indicating a potential upside of 60.64%. BBB Foods has a consensus price target of $43.14, indicating a potential upside of 2.69%. Given Grove Collaborative’s higher possible upside, research analysts plainly believe Grove Collaborative is more favorable than BBB Foods.

Institutional and Insider Ownership

91.6% of Grove Collaborative shares are owned by institutional investors. Comparatively, 8.4% of BBB Foods shares are owned by institutional investors. 30.3% of Grove Collaborative shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Grove Collaborative beats BBB Foods on 8 of the 14 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 BBB Foods

BBB Foods Inc., through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels. BBB Foods Inc. was incorporated in 2004 and is headquartered in Mexico City, Mexico.