Deere & Company (NYSE:DE) and Nature’s Miracle (NASDAQ:NMHI) Critical Analysis

Deere & Company (NYSE:DE) and Nature’s Miracle (NASDAQ:NMHI) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Risk and Volatility

Deere & Company has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Nature’s Miracle has a beta of -0.73, meaning that its stock price is 173% less volatile than the S&P 500.

Profitability

This table compares Deere & Company and Nature’s Miracle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deere & Company	14.69%	36.71%	7.85%
Nature’s Miracle	N/A	N/A	N/A

Insider and Institutional Ownership

68.6% of Deere & Company shares are held by institutional investors. Comparatively, 94.6% of Nature’s Miracle shares are held by institutional investors. 0.3% of Deere & Company shares are held by insiders. Comparatively, 36.2% of Nature’s Miracle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Deere & Company and Nature’s Miracle, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deere & Company	0	13	8	0	2.38
Nature’s Miracle	0	0	0	0	N/A

Deere & Company currently has a consensus price target of $414.11, indicating a potential upside of 7.93%. Given Deere & Company’s higher possible upside, analysts plainly believe Deere & Company is more favorable than Nature’s Miracle.

Earnings and Valuation

This table compares Deere & Company and Nature’s Miracle’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deere & Company	$54.85 billion	1.93	$10.17 billion	$33.22	11.55
Nature’s Miracle	$9.63 million	0.46	-$7.34 million	N/A	N/A

Deere & Company has higher revenue and earnings than Nature’s Miracle.

Summary

Deere & Company beats Nature’s Miracle on 9 of the 11 factors compared between the two stocks.

About Deere & Company

Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides large and medium tractors, combines, cotton pickers and strippers, sugarcane harvesters and loaders, harvesting front-end equipment, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers. The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications; other outdoor power products; and hay and forage equipment. This segment also resells products from other manufacturers. It serves dairy and livestock producers, crop producers, and turf and utility customers. The Construction and Forestry segment provides a range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape and skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, asphalt plants, log skidders, log feller bunchers, log loaders and forwarders, log harvesters, and attachments; and roadbuilding equipment. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties, as well as finances retail revolving charge accounts. The company was founded in 1837 and is headquartered in Moline, Illinois.

About Nature’s Miracle

Nature's Miracle Holding Inc., an agriculture technology company, provides equipment and services to growers in the controlled environment agriculture industry in North America. The company provides grow lights and other hydroponic products; and develops a pipeline to build commercial-scale greenhouse for fresh and local vegetable products. It also designs, builds, and operates various indoor growing settings, including greenhouse and indoor-growing spaces. Nature's Miracle Holding Inc. is based in Upland, California.