Green Thumb Industries (OTC:GTBIF – Get Free Report) and Verano (OTCMKTS:VRNOF – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Institutional & Insider Ownership
0.1% of Green Thumb Industries shares are held by institutional investors. Comparatively, 9.0% of Verano shares are held by institutional investors. 10.4% of Green Thumb Industries shares are held by insiders. Comparatively, 10.4% of Verano shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Green Thumb Industries and Verano’s 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% |
| Verano | -16.31% | -7.48% | -4.03% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Green Thumb Industries | 0 | 0 | 0 | 3 | 4.00 |
| Verano | 0 | 0 | 1 | 2 | 3.67 |
Verano has a consensus target price of $7.00, suggesting a potential upside of 976.76%. Given Verano’s higher probable upside, analysts clearly believe Verano is more favorable than Green Thumb Industries.
Risk and Volatility
Green Thumb Industries has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Verano has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Green Thumb Industries and Verano”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Green Thumb Industries | $1.05 billion | 1.27 | $36.27 million | $0.30 | 20.97 |
| Verano | $938.45 million | 0.25 | -$117.35 million | ($0.97) | -0.67 |
Green Thumb Industries has higher revenue and earnings than Verano. Verano is trading at a lower price-to-earnings ratio than Green Thumb Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Green Thumb Industries beats Verano on 11 of the 14 factors compared between the two stocks.
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.
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.
Receive News & Ratings for Green Thumb Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Green Thumb Industries and related companies with MarketBeat.com's FREE daily email newsletter.
