Critical Review: Hydrofarm Holdings Group (NASDAQ:HYFM) vs. Central Garden & Pet (NASDAQ:CENT)


Hydrofarm Holdings Group (NASDAQ:HYFM – Get Rating) and Central Garden & Pet (NASDAQ:CENT – Get Rating) are both basic materials companies, but which business is superior? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Hydrofarm Holdings Group and Central Garden & Pet, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hydrofarm Holdings Group 0 3 3 0 2.50
Central garden and pet 0 1 0 0 2.00

Hydrofarm Holdings Group currently has a consensus price target of $16.67, suggesting a potential upside of 417.60%. Central Garden & Pet has a consensus price target of $60.00, suggesting a potential upside of 35.96%. Given Hydrofarm Holdings Group’s stronger consensus rating and likely higher upside, stock analysts clearly believe Hydrofarm Holdings Group is more favorable than Central Garden & Pet.

Risk and Volatility

Hydrofarm Holdings Group has a beta of 1.91, meaning its stock price is 91% more volatile than the S&P 500. By comparison, Central Garden & Pet has a beta of 0.56, meaning its stock price is 44% less volatile than the S&P 500. .

Institutional and insider ownership

63.2% of the shares of the Hydrofarm Holdings group are held by institutional investors. By comparison, 18.6% of Central Garden & Pet’s shares are held by institutional investors. 3.3% of Hydrofarm Holdings group shares are held by insiders. By comparison, 8.8% of Central Garden & Pet’s stock is held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Hydrofarm Holdings Group and Central Garden & Pet.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hydrofarm Holdings Group $479.42 million 0.30 $13.42 million ($0.35) -9.20
Central garden and pet $3.30 billion 0.74 $151.75 million $2.74 16.11

Central Garden & Pet has higher revenue and profit than Hydrofarm Holdings Group. Hydrofarm Holdings Group trades at a lower price-to-earnings ratio than Central Garden & Pet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Hydrofarm Holdings Group and Central Garden & Pet.

Net margins Return on equity return on assets
Hydrofarm Holdings Group -3.09% 1.44% 1.10%
Central garden and pet 4.48% 12.18% 4.78%

Summary

Central Garden & Pet beats Hydrofarm Holdings Group on 9 out of 14 factors compared between the two stocks.

About Hydrofarm Holdings Group

(Get an assessment)

Hydrofarm Holdings Group, Inc., together with its subsidiaries, is engaged in the manufacture and distribution of controlled environment farming (CEA) equipment and supplies in the United States and Canada. The Company offers agricultural lighting devices, indoor climate control equipment, hydroponics and nutrients, and plant additives used to grow, cultivate and cultivate cannabis, flowers, fruits, plants, vegetables, grains and herbs in a controlled environment; and distributes CEA equipment and supplies, which include grow light systems; heating, ventilation and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, coolers and filters; nutrient and fertilizer delivery systems; and various growing media based on soil, rock wool or coconut fibre. It also provides hydroponic systems, such as hydro systems, hydro trays and components, meters and solutions, pumps and irrigation systems, water filtration systems, pots and containers, as well as tents and tarps; atmospheric control equipment including controllers, monitors and timers, ventilation/air conditioning equipment, air purification equipment and CO2 equipment; and nutrients and additives. The Company offers its products under the brands Phantom, PhotoBio, Active Aqua, Active Air, HEAVY 16, House & Garden, Mad Farmer, Roots Organics, Soul, Procision, Grotek, Gaia Green, Innovative Growers Equipment, Quantum, Xtrasun, Digilux, Agrobrite. , SunBlaster, Jump Start, Active Eye, Autopilot, Phat, oxyClone and GROW!T. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.

About Central Garden & Pet

(Get an assessment)

Central Garden & Pet logoCentral Garden & Pet Company produces and distributes various products for the lawn and garden and pet supply markets in the United States. It operates through two segments, Pet and Garden. The Pets segment provides dog and cat supplies, such as dog treats and chews, toys, pet beds and grooming products, waste management and training mats, and pet containment devices; supplies for aquatic animals, small animals, reptiles and pet birds, including toys, cages and habitats, bedding, food and supplements; animal and household health and insect control products; live fish and products for fish, reptiles and other aquarium pets, such as aquariums, furniture and fixtures, pumps, filters, water conditioners, foods and supplements; and products for horses and livestock, as well as outdoor cushions and pillows. This segment sells its products under the brands Aqueon, Cadet, Comfort Zone, Farnam, Four Paws, Kaytee, K&H Pet Products, Nylabone and Zilla. The Garden segment offers lawn and garden supplies products that include grass seed; wild bird feed, bird feeders, birdhouses and other bird watching accessories; fertilizers; decorative outdoor lifestyle products; live plants; and weeds and grass, as well as other herbicides, insecticides and pesticides. This segment sells its lawn and garden supplies products under the AMDRO, Ferry-Morse, Pennington and Sevin brands, as well as other Bell Nursery, Lilly Miller and Over-N-Out brands. Central Garden & Pet Company was founded in 1955 and is based in Walnut Creek, California.



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