Critical Review: Cresco Labs (OTCMKTS:CRLBF) versus True Drinks (OTCMKTS:TRUU)

Cresco Labs (OTCMKTS:CRLBFGet Rating) and True Drinks (OTCMKTS:TRUUGet Rating) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares Cresco Labs and True Drinks’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cresco Labs $821.68 million 1.26 N/A N/A N/A
True Drinks $1.95 million 228.23 -$3.88 million N/A N/A

Cresco Labs has higher revenue and earnings than True Drinks.

Insider & Institutional Ownership

0.2% of Cresco Labs shares are held by institutional investors. 18.2% of True Drinks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Cresco Labs and True Drinks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cresco Labs N/A N/A N/A
True Drinks -255.80% N/A -165.86%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cresco Labs and True Drinks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cresco Labs 0 0 7 0 3.00
True Drinks 0 0 0 0 N/A

Cresco Labs presently has a consensus price target of $16.79, suggesting a potential upside of 338.27%. Given Cresco Labs’ higher possible upside, equities analysts plainly believe Cresco Labs is more favorable than True Drinks.

Summary

Cresco Labs beats True Drinks on 6 of the 8 factors compared between the two stocks.

About Cresco Labs (Get Rating)

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand, as well as cannabis products under the Reserve brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections, fruit-forward gummies, hard sweets, and taffy under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. As of January 27, 2022, it owned and operated 48 dispensaries. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.

About True Drinks (Get Rating)

True Drinks Holdings, Inc. markets and distributes nutritional supplement drinks. The company sells Bazi All Natural Energy, a liquid nutritional supplement drink through drinkbazi.com. It also formulates products containing CBD; and produces and distributes vapor products in approximately 90 countries. The company was formerly known as True Drinks, Inc. and changed its name to True Drinks Holdings, Inc. in October 2012. True Drinks Holdings, Inc. was founded in 2008 and is headquartered in Irvine, California.

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