General Cannabis (OTCMKTS:CANN – Get Rating) and Rite Aid (NYSE:RAD – Get Rating) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
56.0% of Rite Aid shares are owned by institutional investors. 38.0% of General Cannabis shares are owned by company insiders. Comparatively, 2.3% of Rite Aid shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares General Cannabis and Rite Aid’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|General Cannabis||$5.93 million||5.84||-$8.87 million||N/A||N/A|
|Rite Aid||$24.57 billion||0.02||-$538.48 million||($9.95)||-0.82|
General Cannabis has higher earnings, but lower revenue than Rite Aid.
This is a summary of recent recommendations for General Cannabis and Rite Aid, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rite Aid has a consensus target price of $8.33, suggesting a potential upside of 1.63%. Given Rite Aid’s higher probable upside, analysts clearly believe Rite Aid is more favorable than General Cannabis.
This table compares General Cannabis and Rite Aid’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
General Cannabis has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Rite Aid has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Rite Aid beats General Cannabis on 7 of the 10 factors compared between the two stocks.
General Cannabis Company Profile (Get Rating)
General Cannabis Corp provides products and services to the regulated cannabis industry and non-cannabis customers in the United States. The company operates in three segments: Operations, Cultivation, and Investments. The Operations segment provides consulting services to the cannabis industry comprising obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations. This segment also provides sourcing and stocking services to cultivation, retail, and infused products manufacturing facilities. The Cultivation segment operates 17,000 square foot of licensed light deprivation greenhouse cultivation facility. The Investments segment provides debt or equity capital to cannabis businesses through investing in businesses. The company was formerly known as Advanced Cannabis Solutions, Inc. and changed its name to General Cannabis Corp in June 2015. General Cannabis Corp was incorporated in 2013 and is headquartered in Denver, Colorado.
Rite Aid Company Profile (Get Rating)
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and an assortment of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, pet care, and other every day and convenience products, as well as brand and generic prescription drugs. It also operates retail clinics that provide treatment for common conditions; and provides preventative services. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides integrated suite of pharmacy benefit management (PBM) offerings, including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication, and pharmacy discount programs, as well as drug benefits under the federal government's Medicare Part D program and insurance offerings for individuals and groups. This segment serves health plans, commercial employers, labor groups, and state and local governments. As of April 28, 2021, the company operated approximately 2,500 retail pharmacy locations in 17 states. Rite Aid Corporation was founded in 1962 and is headquartered in Camp Hill, Pennsylvania.
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