Critical Comparison: Green Thumb Industries (GTBIF) & The Competition

Green Thumb Industries (OTC:GTBIF) is one of 43 public companies in the “Agricultural production – crops” industry, but how does it weigh in compared to its competitors? We will compare Green Thumb Industries to similar businesses based on the strength of its dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

0.1% of Green Thumb Industries shares are owned by institutional investors. Comparatively, 20.7% of shares of all “Agricultural production – crops” companies are owned by institutional investors. 10.4% of Green Thumb Industries 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Green Thumb Industries and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Green Thumb Industries	$1.05 billion	$36.27 million	26.59
Green Thumb Industries Competitors	$1.18 billion	-$6.22 million	15.22

Green Thumb Industries’ competitors have higher revenue, but lower earnings than Green Thumb Industries. Green Thumb Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Green Thumb Industries and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Thumb Industries	0	0	0	3	4.00
Green Thumb Industries Competitors	306	249	603	34	2.31

As a group, “Agricultural production – crops” companies have a potential upside of 39.39%. Given Green Thumb Industries’ competitors higher possible upside, analysts clearly believe Green Thumb Industries has less favorable growth aspects than its competitors.

Volatility and Risk

Green Thumb Industries has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Green Thumb Industries’ competitors have a beta of -24.36, meaning that their average stock price is 2,536% less volatile than the S&P 500.

Profitability

This table compares Green Thumb Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Thumb Industries	5.68%	3.65%	2.52%
Green Thumb Industries Competitors	-100.93%	-2,555.93%	-15.78%

Summary

Green Thumb Industries beats its competitors on 8 of the 13 factors compared.

Green Thumb Industries Company Profile

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.