Financial Review: Kaival Brands Innovations Group (NASDAQ:KAVL) versus Turning Point Brands (NYSE:TPB)

Kaival Brands Innovations Group (NASDAQ:KAVL) and Turning Point Brands (NYSE:TPB) are both consumer defensive companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

96.1% of Turning Point Brands shares are owned by institutional investors. 6.6% of Turning Point Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Kaival Brands Innovations Group and Turning Point Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kaival Brands Innovations Group	N/A	N/A	N/A
Turning Point Brands	10.34%	25.32%	9.52%

Analyst Ratings

This is a summary of current ratings and target prices for Kaival Brands Innovations Group and Turning Point Brands, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaival Brands Innovations Group	1	0	0	0	1.00
Turning Point Brands	0	2	6	1	2.89

Turning Point Brands has a consensus target price of $78.83, suggesting a potential downside of 10.04%. Given Turning Point Brands’ stronger consensus rating and higher probable upside, analysts clearly believe Turning Point Brands is more favorable than Kaival Brands Innovations Group.

Valuation and Earnings

This table compares Kaival Brands Innovations Group and Turning Point Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaival Brands Innovations Group	$1.13 million	N/A	N/A	N/A	N/A
Turning Point Brands	$360.66 million	4.38	$39.81 million	$2.39	36.67

Turning Point Brands has higher revenue and earnings than Kaival Brands Innovations Group.

Summary

Turning Point Brands beats Kaival Brands Innovations Group on 10 of the 10 factors compared between the two stocks.

About Kaival Brands Innovations Group

Kaival Brands Innovations Group, Inc. sells, markets, and distributes electronic nicotine delivery system (ENDS) products and related components in the United States. The company offers Bidi Stick, a disposable and tamper-resistant ENDS product in various flavor options for adult cigarette smokers. It sells its products to non-retail customers through convenience stores and the website www.wholesale.bidivapor.com. The company was formerly known as Quick Start Holdings, Inc. and changed its name to Kaival Brands Innovations Group, Inc. in July 2019. The company is based in Grant-Valkaria, Florida. Kaival Brands Innovations Group, Inc. is a subsidiary of Kaival Holdings, LLC.

About Turning Point Brands

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker’s Products, and Creative Distribution Solutions. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand. The Stoker’s Products segment manufactures and markets moist snuff tobacco and loose-leaf chewing tobacco products under the Stoker’s, Beech-Nut, Durango, Trophy, and Wind River brands. Its Creative Distribution Solutions segment market and distribute other products without tobacco and/or nicotine to individual consumers through VaporFi B2C online platform, as well as non-traditional retail through VaporBeast. In addition, it markets and distributes cannabis accessories and tobacco products. The company sells its products to wholesale distributors and retail merchants in the independent and chain convenience stores, tobacco outlets, food stores, mass merchandising, drug store, and non-traditional retail channels. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. Turning Point Brands, Inc. was founded in 1988 and is headquartered in Louisville, Kentucky.