Head-To-Head Review: China Green Agriculture (CGA) vs. Scotts Miracle-Gro (SMG)

China Green Agriculture (NYSE:CGA) and Scotts Miracle-Gro (NYSE:SMG) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Ratings

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This is a summary of recent ratings and recommmendations for China Green Agriculture and Scotts Miracle-Gro, as provided by MarketBeat.

Scotts Miracle-Gro has a consensus price target of $77.00, indicating a potential upside of 13.99%. Given Scotts Miracle-Gro’s higher probable upside, analysts plainly believe Scotts Miracle-Gro is more favorable than China Green Agriculture.

Valuation and Earnings

This table compares China Green Agriculture and Scotts Miracle-Gro’s top-line revenue, earnings per share (EPS) and valuation.

Scotts Miracle-Gro has higher revenue and earnings than China Green Agriculture.

Dividends

Scotts Miracle-Gro pays an annual dividend of $2.20 per share and has a dividend yield of 3.3%. China Green Agriculture does not pay a dividend. Scotts Miracle-Gro pays out 59.3% of its earnings in the form of a dividend. Scotts Miracle-Gro has increased its dividend for 9 consecutive years.

Institutional and Insider Ownership

4.1% of China Green Agriculture shares are held by institutional investors. Comparatively, 63.9% of Scotts Miracle-Gro shares are held by institutional investors. 30.3% of China Green Agriculture shares are held by company insiders. Comparatively, 30.4% of Scotts Miracle-Gro 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.

Volatility & Risk

China Green Agriculture has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Scotts Miracle-Gro has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares China Green Agriculture and Scotts Miracle-Gro’s net margins, return on equity and return on assets.

Summary

Scotts Miracle-Gro beats China Green Agriculture on 13 of the 15 factors compared between the two stocks.

China Green Agriculture Company Profile

China Green Agriculture, Inc., through its subsidiaries, engages in the research, development, production, and sale of various types of fertilizers and agricultural products. The company operates in three segments: Jinong, Gufeng, and Yuxing. Its fertilizer products include humic acid-based compound fertilizers, compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, highly-concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizers. The company markets its fertilizer products to private wholesalers and retailers of agricultural farm products. It also develops, produces, and markets fruits, vegetables, flowers, and colored seedlings. The company sells its decorative flowers to end-users, such as flower shops, luxury hotels, and government agencies; fruits and vegetables to supermarkets and upscale restaurants; and seedlings to city planning departments. As of June 30, 2018, it operated a network of 1,959 regional distributors covering 22 provinces, 4 autonomous regions, and 4 central government-controlled municipalities in China. The company also exports its products through contracted distributors to India and Africa. China Green Agriculture, Inc. is based in Xi’an, the People’s Republic of China.

Scotts Miracle-Gro Company Profile

The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden products in the United States and internatonally. The company operates through three segments: U.S. Consumer, Hawthorne, and Other. It offers lawn care products, such as lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products. The company also provides gardening and landscape products, including water-soluble and continuous-release plant foods, potting mixes and garden soils, mulch and decorative groundcover products, plant-related pest and disease control products, organic garden products, and lives goods and seeding solutions. In addition, it offers hydroponic products that help users grow plants, flowers, and vegetables in an indoor or urban environment; and insect control products, rodent control products, and weed control products for home areas. The company offers its products under the Scotts, Turf Builder, EZ Seed, PatchMaster, Thick’R Lawn, GrubEx, EdgeGuard, Handy Green II, Scotts OxiCleanTM3, Miracle-Gro, LiquaFeed, Osmocote, Shake ‘N Feed, Hyponex, Earthgro, SuperSoil, Fafard, Nature Scapes, Ortho, Miracle-Gro Organic Choice, Nature’s Care, Whitney Farms, EcoScraps, Gro-ables, Hydroponics, Gavita, Botanicare, Vermicrop, Agrolux, Can-Filters, Sun System, Gro Pro, Mother Earth, Hurricane, Grower’s Edge, AeroGarden, Ortho Weed B Gon, Roundup, and Groundclear brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, food and drug stores, and indoor gardening and hydroponic distributors and retailers through a direct sales force, and network of brokers and distributors. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.

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