Contrasting RDE (NASDAQ:GIFT) and Grove Collaborative (NYSE:GROV)

RDE (NASDAQ:GIFT) and Grove Collaborative (NYSE:GROV) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for RDE and Grove Collaborative, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RDE	0	0	1	0	3.00
Grove Collaborative	0	0	1	0	3.00

RDE presently has a consensus target price of $4.00, indicating a potential upside of 133.92%. Grove Collaborative has a consensus target price of $2.00, indicating a potential upside of 21.58%. Given RDE’s higher possible upside, equities research analysts plainly believe RDE is more favorable than Grove Collaborative.

Risk and Volatility

RDE has a beta of -0.72, meaning that its stock price is 172% less volatile than the S&P 500. Comparatively, Grove Collaborative has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares RDE and Grove Collaborative’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RDE	N/A	-62.87%	-38.24%
Grove Collaborative	-11.35%	-417.96%	-14.19%

Valuation & Earnings

This table compares RDE and Grove Collaborative”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RDE	$85.95 million	0.52	N/A	N/A	N/A
Grove Collaborative	$213.78 million	0.30	-$43.23 million	($0.69)	-2.38

RDE has higher earnings, but lower revenue than Grove Collaborative.

Insider & Institutional Ownership

91.6% of Grove Collaborative shares are held by institutional investors. 20.5% of RDE shares are held by company insiders. Comparatively, 13.1% of Grove Collaborative shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

RDE beats Grove Collaborative on 5 of the 9 factors compared between the two stocks.

About RDE

RDE, Inc. owns and operates a restaurant deal space in the United States. The company operates Restaurant.com that connects digital consumers, businesses, and communities with dining and merchant deal options at approximately 182,500 restaurants and retailers to approximately 7.8 million customers. It sells discount certificates for restaurants, as well as complementary entertainment and travel offerings, and consumer products on behalf of third-party merchants. The company is based in Schaumburg, Illinois.

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.