Head-To-Head Review: High Tide (NASDAQ:HITI) & Raia Drogasil (OTCMKTS:RADLY)

High Tide (NASDAQ:HITI) and Raia Drogasil (OTCMKTS:RADLY) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Profitability

This table compares High Tide and Raia Drogasil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
High Tide	-6.14%	2.06%	1.25%
Raia Drogasil	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for High Tide and Raia Drogasil, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	0	0	1	1	3.50
Raia Drogasil	0	0	0	0	N/A

High Tide currently has a consensus target price of $4.50, indicating a potential upside of 103.62%. Given High Tide’s higher probable upside, analysts clearly believe High Tide is more favorable than Raia Drogasil.

Valuation and Earnings

This table compares High Tide and Raia Drogasil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$511.12 million	0.35	-$29.14 million	($0.32)	-6.94
Raia Drogasil	N/A	N/A	N/A	N/A	N/A

Raia Drogasil has lower revenue, but higher earnings than High Tide.

Insider and Institutional Ownership

4.5% of High Tide shares are held by institutional investors. 12.4% of High Tide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

High Tide beats Raia Drogasil on 8 of the 9 factors compared between the two stocks.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.

About Raia Drogasil

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. It also markets its goods through telesales and call centers in the states of São Paulo, Tocantins, and Pernambuco. The company was founded in 1905 and is headquartered in São Paulo, Brazil.