Tractor Supply (NASDAQ:TSCO) and GrowGeneration (OTCMKTS:GRWG) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Tractor Supply pays an annual dividend of $1.24 per share and has a dividend yield of 1.3%. GrowGeneration does not pay a dividend. Tractor Supply pays out 37.2% of its earnings in the form of a dividend. Tractor Supply has raised its dividend for 7 consecutive years.
This table compares Tractor Supply and GrowGeneration’s net margins, return on equity and return on assets.
This is a breakdown of current ratings and recommmendations for Tractor Supply and GrowGeneration, as provided by MarketBeat.com.
Tractor Supply presently has a consensus price target of $87.29, indicating a potential downside of 6.13%. Given Tractor Supply’s higher probable upside, analysts plainly believe Tractor Supply is more favorable than GrowGeneration.
Institutional & Insider Ownership
81.9% of Tractor Supply shares are held by institutional investors. Comparatively, 0.6% of GrowGeneration shares are held by institutional investors. 1.6% of Tractor Supply shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Tractor Supply and GrowGeneration’s gross revenue, earnings per share (EPS) and valuation.
Tractor Supply has higher revenue and earnings than GrowGeneration. GrowGeneration is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.
Tractor Supply beats GrowGeneration on 13 of the 15 factors compared between the two stocks.
Tractor Supply Company Profile
Tractor Supply Company operates rural lifestyle retail stores in the United States. The company offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use. As of December 30, 2017, it operated 1,853 retail stores in 49 states. The company operates its retail stores under the Tractor Supply Company, Del's Feed & Farm Supply, and Petsense names. It also operates e-commerce Websites, TractorSupply.com and Petsense.com. The company sells its products to recreational farmers, ranchers, and others, as well as tradesmen and small businesses. Tractor Supply Company was founded in 1938 and is headquartered in Brentwood, Tennessee.
GrowGeneration Company Profile
GrowGeneration Corp., through its subsidiaries, operates retail hydroponic stores. It offers farming soil, hydroponic equipment, lighting, plant nutrients, and various other products. The company serves home growers of organic vegetables and fruits, do-it yourselfers, and growers in the cannabis related markets. As of December 31, 2017, it operated 13 retail hydroponic/gardening stores, including 8 stores located in Colorado, 2 stores in California, 2 stores in Nevada, and 1 store in Washington. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Denver, Colorado.