Contrasting Green Thumb Industries (OTC:GTBIF) and Verano (OTCMKTS:VRNOF)

Green Thumb Industries (OTC:GTBIF) and Verano (OTCMKTS:VRNOF) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Green Thumb Industries and Verano”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Thumb Industries	$1.05 billion	1.25	$36.27 million	$0.30	20.63
Verano	$938.45 million	0.25	-$117.35 million	($0.97)	-0.66

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.

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 company insiders. Comparatively, 10.4% of Verano shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Green Thumb Industries has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Verano has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

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 Ratings

This is a breakdown of recent ratings and target prices for Green Thumb Industries and Verano, as reported by MarketBeat.

	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, indicating a potential upside of 992.21%. Given Verano’s higher possible 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 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.