CEA Industries Inc. (BNC) vs Hydrofarm Holdings Group, Inc. (HYFM)

CEA Industries Inc. and Hydrofarm Holdings Group, Inc. are both Farm & Heavy Construction Machinery companies. CEA Industries Inc. is the larger, with a market value of $256.5M against $4.6M — 55.4× the size. Hydrofarm Holdings Group, Inc. has negative trailing earnings, so its P/E is not meaningful; CEA Industries Inc. trades at 1.6×. CEA Industries Inc. grew revenue faster over the last twelve months: −14.9% against −34.1%. CEA Industries Inc. has the higher net margin (362.3% vs −267.2%) and the higher return on invested capital (−38.0% vs −646.8%). Across the 17 metrics below, CEA Industries Inc. leads on 10 and Hydrofarm Holdings Group, Inc. on 7.

Valuation

Metric BNC HYFM Farm & Heavy Construction Machinery median
P/E 1.60 n/m 23.38
P/S 11.15 0.04 0.81
P/B 1.12 n/m 1.43
Price to free cash flow n/m n/m 25.31
EV/EBITDA n/m n/m 12.13
EV/Sales 11.45 1.13 1.20
Earnings yield 62.52% (6,257.73%) 2.73%
Free cash flow yield (126.37%) (78.40%) 3.02%

Profitability

Metric BNC HYFM Farm & Heavy Construction Machinery median
Gross margin 29.19% 9.42% 24.21%
Operating margin (622.73%) (253.04%) 4.47%
Net margin 362.28% (267.20%) 1.49%
Free cash flow margin (108.42%) (3.42%) 2.15%
Return on equity 70.89% (535.51%) 4.16%
Return on assets 60.66% (115.49%) 1.45%
Return on invested capital (37.95%) (646.82%) 3.36%

Growth

Metric BNC HYFM Farm & Heavy Construction Machinery median
Revenue growth (TTM) (14.88%) (34.07%) 2.18%
EPS growth (last fiscal year) (99.38%) (329.70%) —
Revenue growth, 5-year CAGR 16.55% (17.07%) 7.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BNC HYFM Farm & Heavy Construction Machinery median
Debt to equity 0.05 (1.37) 0.67
Current ratio 0.62 0.27 1.98
Net debt to EBITDA 0.01 (0.45) 1.12

Dividend

Metric BNC HYFM Farm & Heavy Construction Machinery median
Dividend yield — — 1.45%
Payout ratio 0.00 0.00 0.08

Size

Metric BNC HYFM Farm & Heavy Construction Machinery median
Market cap 256.51m 4.63m 772.81m

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