Critical Contrast: Charlie’s (OTCMKTS:CHUC) & Tilray (NASDAQ:TLRY)

Tilray (NASDAQ:TLRYGet Rating) and Charlie’s (OTCMKTS:CHUCGet Rating) are both consumer staples companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

This table compares Tilray and Charlie’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tilray 6.80% -0.78% -0.59%
Charlie’s 22.37% -93.54% 60.00%

Valuation and Earnings

This table compares Tilray and Charlie’s’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tilray $513.09 million 5.25 -$367.42 million $0.19 28.47
Charlie’s $21.50 million 0.94 $4.81 million N/A N/A

Charlie’s has lower revenue, but higher earnings than Tilray.

Insider & Institutional Ownership

12.5% of Tilray shares are held by institutional investors. 3.0% of Tilray shares are held by insiders. Comparatively, 50.5% of Charlie’s shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Tilray has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, Charlie’s has a beta of 5.32, meaning that its stock price is 432% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Tilray and Charlie’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tilray 1 7 5 0 2.31
Charlie’s 0 0 0 0 N/A

Tilray presently has a consensus target price of $9.90, indicating a potential upside of 82.99%. Given Tilray’s higher probable upside, equities research analysts clearly believe Tilray is more favorable than Charlie’s.

Summary

Tilray beats Charlie’s on 6 of the 11 factors compared between the two stocks.

About Tilray (Get Rating)

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Nanaimo, Canada.

About Charlie’s (Get Rating)

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes e-cigarette liquids and vaping systems in the United States and internationally. The company also offers energy drink under the Bazi brand name. It sells its products through distributors, specialty retailers, and third-party online resellers to approximately 80 countries, primarily, including the United Kingdom, Italy, Spain, Belgium, Australia, Sweden, and Canada. The company was formerly known as True Drinks Holdings, Inc. and changed its name to Charlie's Holdings, Inc. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

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