Charlie’s (OTCMKTS:CHUC) versus British American Tobacco (OTCMKTS:BTAFF) Critical Analysis

Valuation & Earnings

This table compares Charlie’s and British American Tobacco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charlie’s	$8.49 million	10.57	-$4.16 million	$0.01	33.64
British American Tobacco	N/A	N/A	N/A	$1.92	27.36

British American Tobacco has lower revenue, but higher earnings than Charlie’s. British American Tobacco is trading at a lower price-to-earnings ratio than Charlie’s, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Charlie’s and British American Tobacco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charlie’s	19.36%	-174.49%	36.91%
British American Tobacco	N/A	N/A	N/A

Institutional & Insider Ownership

7.8% of Charlie’s shares are owned by institutional investors. Comparatively, 39.7% of British American Tobacco shares are owned by institutional investors. 20.9% of Charlie’s 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.

Summary

Charlie’s beats British American Tobacco on 5 of the 8 factors compared between the two stocks.

About Charlie’s

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes non-combustible nicotine-related, alternative alkaloid vapor, and hemp-derived vapor and edible products. It sells its products through distributors, specialty retailers, and third-party online resellers in the United States, the United Kingdom, Italy, Spain, New Zealand, Australia, and Canada. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

About British American Tobacco

British American Tobacco p.l.c. engages in the provision of tobacco and nicotine products to consumers worldwide. It also offers vapour, heated, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff. The company offers its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Camel, Natural American Spirit, Newport, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, State Express 555 and Shuang Xi brands. It also distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is based in London, the United Kingdom.