Critical Survey: Smart for Life (NASDAQ:SMFL) vs. Charlie’s (OTCMKTS:CHUC)

Charlie’s (OTCMKTS:CHUC) and Smart for Life (NASDAQ:SMFL) are both small-cap consumer staples companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Charlie’s and Smart for Life, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Charlie’s	0	0	0	0	N/A
Smart for Life	0	0	0	0	N/A

Profitability

This table compares Charlie’s and Smart for Life’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charlie’s	-20.59%	N/A	-49.17%
Smart for Life	N/A	N/A	N/A

Valuation & Earnings

This table compares Charlie’s and Smart for Life”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charlie’s	$16.25 million	1.27	-$2.09 million	N/A	N/A
Smart for Life	$11.11 million	0.00	-$22.68 million	($1,115.67)	0.00

Charlie’s has higher revenue and earnings than Smart for Life.

Risk & Volatility

Charlie’s has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Smart for Life has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

7.8% of Charlie’s shares are held by institutional investors. Comparatively, 28.4% of Smart for Life shares are held by institutional investors. 22.4% of Charlie’s shares are held by insiders. Comparatively, 31.7% of Smart for Life shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About Charlie’s

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes non-combustible nicotine-related, alternative alkaloid vapor, and hemp-derived vapor and edible products. It sells its products through distributors, specialty retailers, and third-party online resellers in the United States, the United Kingdom, Italy, Spain, New Zealand, Australia, and Canada. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

About Smart for Life

Smart for Life, Inc. acquires, develops, manufactures, operates, markets, and sells nutraceutical and related products in the United States and internationally. It offers natural health and wellness meal replacement products, including nutrition bars, cookies, soups and shakes, vitamins, and supplements under the Smart for Life brand; dietary supplements; and nutritional products, including whey protein isolate powder, tablet supplements for joint health, nitric oxide, post workout blends, Omega-3 supplements, and pre-workout supplements under the Sports Illustrated Nutrition brand for athletes and active lifestyle consumers. The company also provides various nutritional products, including antioxidant rich supplements, plant-based proteins, alkalizing nutrients, and weight management products. It sells its products through online market platforms. The company was formerly known as Bonne Santé Group, Inc. and changed its name to Smart for Life, Inc. in August 2021. Smart for Life, Inc. was founded in 2002 and is based in Boca Raton, Florida.