Verano (OTCMKTS:VRNOF – Get Free Report) and Green Thumb Industries (OTC:GTBIF – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
Insider & Institutional Ownership
9.0% of Verano shares are held by institutional investors. Comparatively, 0.1% of Green Thumb Industries shares are held by institutional investors. 10.4% of Verano shares are held by insiders. Comparatively, 10.4% of Green Thumb Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Verano and Green Thumb Industries”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Verano | $938.45 million | 0.25 | -$117.35 million | ($0.97) | -0.67 |
Green Thumb Industries | $1.05 billion | 1.27 | $36.27 million | $0.30 | 20.97 |
Volatility and Risk
Verano has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Green Thumb Industries has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.
Profitability
This table compares Verano and Green Thumb Industries’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Verano | -16.31% | -7.48% | -4.03% |
Green Thumb Industries | 5.68% | 3.65% | 2.52% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Verano and Green Thumb Industries, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Verano | 0 | 0 | 1 | 2 | 3.67 |
Green Thumb Industries | 0 | 0 | 0 | 3 | 4.00 |
Verano presently has a consensus target price of $7.00, suggesting a potential upside of 976.76%. Given Verano’s higher probable upside, analysts plainly believe Verano is more favorable than Green Thumb Industries.
Summary
Green Thumb Industries beats Verano on 11 of the 14 factors compared between the two stocks.
About Verano
Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.
About Green Thumb Industries
Green Thumb Industries Inc. manufactures, distributes, markets, and sells of cannabis products for medical and adult-use in the United States. It operates through two segments, Retail and Consumer Packaged Goods. The company offers cannabis flower; processed and packaged products, including pre-rolls, concentrates, vapes, capsules, tinctures, edibles, topicals, and other cannabis-related products under the &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RHYTHM brands. It distributes its products primarily to third-party retail customers and sells finished products directly to consumers in its own retail stores, as well as direct-to consumer delivery channel. Green Thumb Industries Inc. was founded in 2014 and is headquartered in Chicago, Illinois.
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