Critical Review: Grown Rogue International (OTCMKTS:GRUSF) & YaSheng Group (OTCMKTS:HERB)

YaSheng Group (OTCMKTS:HERB) and Grown Rogue International (OTCMKTS:GRUSF) are both small-cap consumer staples companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares YaSheng Group and Grown Rogue International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YaSheng Group	N/A	N/A	N/A
Grown Rogue International	-1.70%	-3.71%	-1.67%

Risk and Volatility

YaSheng Group has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Grown Rogue International has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for YaSheng Group and Grown Rogue International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YaSheng Group	0	0	0	0	N/A
Grown Rogue International	0	0	0	0	N/A

Institutional and Insider Ownership

9.3% of Grown Rogue International shares are held by institutional investors. 23.2% of Grown Rogue International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares YaSheng Group and Grown Rogue International’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YaSheng Group	$18.59 million	0.55	$5.31 million	N/A	N/A
Grown Rogue International	$23.35 million	5.62	-$130,000.00	$0.01	66.07

YaSheng Group has higher earnings, but lower revenue than Grown Rogue International.

Summary

Grown Rogue International beats YaSheng Group on 5 of the 9 factors compared between the two stocks.

About YaSheng Group

YaSheng Group, through its subsidiaries, designs, develops, manufactures, and markets farming and sideline products; chemical materials and products; textiles; construction materials; and livestock and poultry products primarily in the People's Republic of China. It cultivates, processes, markets, and distributes various food and agro-byproducts. The company's products include cotton, corns, barley, wheat, flax, and alfalfa; vegetables comprising onions, potatoes, beet, and peas; fruits, including apples, pears, and apricots; specialty crops consisting of hops, wolfberries, cumin, hemp, and liquorices; seeds, such as black melon, sunflower, corn, hemp, and flax seeds; and eggs. It also provides construction materials, such as cement; and designs, develops, and markets new technologies related to agriculture and genetic biology. The company sells its products to food processors, supermarkets, and wholesale stores through distributors, as well as to direct customers. YaSheng Group exports its products. The company was founded in 1998 and is based in Lanzhou, the People's Republic of China. As of December 31, 2015, YaSheng Group is a subsidiary of Gansu Yasheng Salt Chemical Industrial Group, Ltd.

About Grown Rogue International

Grown Rogue International Inc., together with its subsidiaries, produces and sells cannabis products in the United States. It offers a range of cultivars for consumers, which are classified as indicas, sativas, and hybrids, as well as provides consulting services. The company sells its products through dispensaries. Grown Rogue International Inc. is headquartered in Medford, Oregon.