Head to Head Review: TerrAscend (TSNDF) versus The Competition

TerrAscend (OTCMKTS:TSNDF) is one of 43 public companies in the “Agricultural production – crops” industry, but how does it contrast to its peers? We will compare TerrAscend to similar companies based on the strength of its profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.

Risk & Volatility

TerrAscend has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, TerrAscend’s peers have a beta of -19.62, meaning that their average share price is 2,062% less volatile than the S&P 500.

Earnings and Valuation

This table compares TerrAscend and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TerrAscend	$317.33 million	-$95.54 million	-1.22
TerrAscend Competitors	$1.23 billion	-$827,419.35	6.48

TerrAscend’s peers have higher revenue and earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TerrAscend and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
TerrAscend Competitors	320	262	606	34	2.29

As a group, “Agricultural production – crops” companies have a potential upside of 74.82%. Given TerrAscend’s peers higher possible upside, analysts clearly believe TerrAscend has less favorable growth aspects than its peers.

Profitability

This table compares TerrAscend and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-23.95%	-31.48%	-11.40%
TerrAscend Competitors	-98.15%	-2,439.03%	-14.56%

Institutional and Insider Ownership

5.8% of TerrAscend shares are owned by institutional investors. Comparatively, 20.7% of shares of all “Agricultural production – crops” companies are owned by institutional investors. 31.9% of TerrAscend shares are owned by company insiders. Comparatively, 16.0% of shares of all “Agricultural production – crops” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

TerrAscend beats its peers on 7 of the 13 factors compared.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.