Financial Review: Metso Oyj (OTCMKTS:OUKPY) vs. Hydrofarm Holdings Group (NASDAQ:HYFM)

Hydrofarm Holdings Group (NASDAQ:HYFM) and Metso Oyj (OTCMKTS:OUKPY) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Hydrofarm Holdings Group and Metso Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydrofarm Holdings Group	0	2	0	0	2.00
Metso Oyj	0	0	3	0	3.00

Hydrofarm Holdings Group currently has a consensus price target of $0.90, suggesting a potential downside of 13.46%. Given Hydrofarm Holdings Group’s higher probable upside, analysts plainly believe Hydrofarm Holdings Group is more favorable than Metso Oyj.

Profitability

This table compares Hydrofarm Holdings Group and Metso Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydrofarm Holdings Group	-28.60%	-16.76%	-9.83%
Metso Oyj	N/A	N/A	N/A

Earnings & Valuation

This table compares Hydrofarm Holdings Group and Metso Oyj’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hydrofarm Holdings Group	$226.58 million	0.21	-$64.81 million	($1.42)	-0.73
Metso Oyj	N/A	N/A	N/A	N/A	N/A

Metso Oyj has lower revenue, but higher earnings than Hydrofarm Holdings Group.

Institutional and Insider Ownership

26.6% of Hydrofarm Holdings Group shares are owned by institutional investors. Comparatively, 0.0% of Metso Oyj shares are owned by institutional investors. 3.8% of Hydrofarm Holdings Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Metso Oyj beats Hydrofarm Holdings Group on 5 of the 9 factors compared between the two stocks.

About Hydrofarm Holdings Group

Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada. The company provides agricultural lighting devices, indoor climate control equipment, and nutrients, as well as plant additives used to grow, farm, and cultivate cannabis, flowers, fruits, plants, vegetables, grains, and herbs in controlled environment. It is also involved in the distribution of CEA equipment and supplies comprising nutrients and fertilizers; grow light systems; horticulture benches and racking systems; heating, ventilation, and air conditioning systems; humidity and carbon dioxide monitors and controllers; water pumps, heaters, chillers, and filters; and various growing media typically made from soil, peat, rock wool or coconut fiber, and others. The company offers its products to specialty hydroponic retailers, commercial resellers and greenhouse builders, garden centers, hardware stores, and e-commerce retailers under the Active Air, Active Aqua, Aurora Peat Products, HEAVY 16, House & Garden, Gaia Green, Grotek, Innovative Growers Equipment, Mad Farmer, Phantom, PHOTOBIO, Procision, Roots Organics, Soul, and SunBlaster brands. It serves its products through a range of commercial and home gardening equipment and supplies retailers. Hydrofarm Holdings Group, Inc. was founded in 1977 and is based in Shoemakersville, Pennsylvania.

About Metso Oyj

Metso Oyj provides technologies, end-to-end solutions, and services for aggregates, minerals processing, and metals refining industries in Europe, North and Central America, South America, the Asia Pacific, Africa, the Middle East, and India. The company operates in three segments: Aggregates, Minerals, and Metals. It offers a range of equipment, parts, and services for quarries, aggregates contractors, and construction companies; and process solutions, equipment, and aftermarket services for mining operations. The company also provides solutions for processing virtually various types of ores and concentrates to refined metals. The company was formerly known as Metso Outotec Oyj. Metso Oyj was incorporated in 1990 and is headquartered in Helsinki, Finland.