Comparing Green Thumb Industries (OTC:GTBIF) and Limoneira (NASDAQ:LMNR)

Green Thumb Industries (OTC:GTBIF) and Limoneira (NASDAQ:LMNR) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares Green Thumb Industries and Limoneira’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%
Limoneira	4.03%	4.34%	2.68%

Risk & Volatility

Green Thumb Industries has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Limoneira has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Green Thumb Industries shares are owned by institutional investors. Comparatively, 64.3% of Limoneira shares are owned by institutional investors. 10.4% of Green Thumb Industries shares are owned by insiders. Comparatively, 8.9% of Limoneira shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Thumb Industries	$1.05 billion	1.07	$36.27 million	$0.30	17.70
Limoneira	$186.08 million	1.53	$7.72 million	$0.41	38.49

Green Thumb Industries has higher revenue and earnings than Limoneira. Green Thumb Industries is trading at a lower price-to-earnings ratio than Limoneira, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Green Thumb Industries and Limoneira, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Thumb Industries	0	0	0	3	4.00
Limoneira	0	1	1	0	2.50

Limoneira has a consensus target price of $25.50, suggesting a potential upside of 61.60%. Given Limoneira’s higher possible upside, analysts plainly believe Limoneira is more favorable than Green Thumb Industries.

Summary

Limoneira beats Green Thumb Industries on 8 of the 15 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 Limoneira

Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through three divisions: Agribusiness, Rental Operations, and Real Estate Development. It grows, processes, packs, markets, and sells lemons. The company also grows avocado, oranges, and specialty citrus and other crops, including Moro blood oranges, Cara Cara oranges, Valencia oranges, Minneola tangelos, Star Ruby grapefruit, pummelos, and wine grapes. It has approximately 3,500 acres of lemons planted primarily in Ventura, Tulare, San Luis Obispo, and San Bernardino Counties in California; and Jujuy, Argentina, as well in Yuma County, Arizona, and La Serena, Chile; 1,200 acres of avocados planted in Ventura County; 100 acres of oranges planted in Tulare County, California; and 400 acres of specialty citrus and other crops. In addition, the company rents residential housing units and commercial office buildings, as well as leases approximately 400 acres of its land to third-party agricultural tenants. Further, it is involved in the organic recycling operations; and development of land parcels, multi-family housing, and single-family homes. The company markets and sells its lemons directly to food service, wholesale, and retail customers; avocados, oranges, specialty citrus, and other crops to third-party packinghouses; and wine grapes to wine producers. Limoneira Company was founded in 1893 and is headquartered in Santa Paula, California.