Critical Analysis: Heritage Distilling (NASDAQ:CASK) vs. Better Choice (NASDAQ:BTTR)

Better Choice (NASDAQ:BTTR) and Heritage Distilling (NASDAQ:CASK) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

12.6% of Better Choice shares are owned by institutional investors. 13.6% of Better Choice shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Better Choice and Heritage Distilling, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Better Choice	0	0	1	0	3.00
Heritage Distilling	0	0	0	0	0.00

Better Choice currently has a consensus price target of $10.00, suggesting a potential upside of 376.19%. Given Better Choice’s stronger consensus rating and higher probable upside, equities analysts plainly believe Better Choice is more favorable than Heritage Distilling.

Valuation and Earnings

This table compares Better Choice and Heritage Distilling”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Better Choice	$33.52 million	0.12	-$22.77 million	($20.73)	-0.10
Heritage Distilling	$7.76 million	0.93	N/A	N/A	N/A

Heritage Distilling has lower revenue, but higher earnings than Better Choice.

Profitability

This table compares Better Choice and Heritage Distilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Better Choice	-39.83%	-206.10%	-60.54%
Heritage Distilling	N/A	N/A	N/A

Summary

Better Choice beats Heritage Distilling on 6 of the 10 factors compared between the two stocks.

About Better Choice

Better Choice Company Inc. operates as a pet health and wellness company. Its products portfolio includes naturally formulated kibble and canned dog and cat foods, freeze-dried raw dog foods and treats, vegan dog foods and treats, oral care products and supplements, as well as toppers, dental products, and chews. The company sells its products under Halo Holistic and Halo Elevate brands. It primarily sells its products through its online portals, as well as through online retailers and pet specialty retailers. The company has operations in the United States, Canada, and select Asian markets, including China. The company was formerly known as Sports Endurance, Inc. and changed its name to Better Choice Company Inc. in March 2019. Better Choice Company Inc. is based in Tampa, Florida.

About Heritage Distilling

Heritage Distilling Holding Company Inc. is a craft distiller of premium brands, including whiskeys, vodkas, gins, rums and ready-to-drink canned cocktails. Heritage Distilling Holding Company Inc. is based in GIG HARBOR, Wash.