Verano (OTCMKTS:VRNOF) and Green Thumb Industries (OTC:GTBIF) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Verano and Green Thumb Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verano	0	0	1	2	3.67
Green Thumb Industries	0	0	0	3	4.00

Verano presently has a consensus price target of $7.00, suggesting a potential upside of 976.92%. Given Verano’s higher probable upside, equities analysts clearly believe Verano is more favorable than Green Thumb Industries.

Risk and Volatility

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Verano	-16.31%	-7.48%	-4.03%
Green Thumb Industries	5.68%	3.65%	2.52%

Earnings and Valuation

This table compares Verano and Green Thumb Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verano	$938.45 million	0.25	-$117.35 million	($0.97)	-0.67
Green Thumb Industries	$1.05 billion	1.22	$36.27 million	$0.30	20.17

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.

Insider & Institutional Ownership

9.0% of Verano shares are owned by institutional investors. Comparatively, 0.1% of Green Thumb Industries shares are owned by institutional investors. 10.4% of Verano shares are owned by insiders. Comparatively, 10.4% of Green Thumb Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Green Thumb Industries beats Verano on 11 of the 14 factors compared between the two stocks.

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.

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.