Critical Contrast: Cyanotech (OTCMKTS:CYAN) vs. Charlie’s (OTCMKTS:CHUCD)

Insider and Institutional Ownership

24.4% of Cyanotech shares are held by institutional investors. Comparatively, 3.1% of Charlie’s shares are held by institutional investors. 34.4% of Cyanotech shares are held by insiders. Comparatively, 74.8% of Charlie’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Cyanotech and Charlie’s”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cyanotech	$24.22 million	0.10	-$3.20 million	($0.25)	-1.32
Charlie’s	$16.69 million	2.33	-$7.19 million	N/A	N/A

Cyanotech has higher revenue and earnings than Charlie’s.

Volatility and Risk

Cyanotech has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500. Comparatively, Charlie’s has a beta of 5.57, meaning that its share price is 457% more volatile than the S&P 500.

Profitability

This table compares Cyanotech and Charlie’s’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cyanotech	-7.03%	-20.62%	-7.52%
Charlie’s	-140.60%	N/A	-327.67%

Summary

Cyanotech beats Charlie’s on 5 of the 9 factors compared between the two stocks.

About Cyanotech

Cyanotech Corp. engages in the cultivation, production, and sale of natural products derived from microalgae for the health and human nutrition markets worldwide. Its products include BioAstin Hawaiian Astaxanthin, a dietary antioxidant, which is used as a human dietary supplement and dietary ingredient to support and maintain the body’s natural inflammatory response, enhance skin, and support eye, joint, and immune health; and Hawaiian Spirulina Pacifica, a nutrient-rich dietary supplement that is used for extra energy, a strengthened immune system, cardiovascular benefits, and as a source of antioxidant carotenoids. The company was founded by Gerald R. Cysewski in 1983 and is headquartered in Kailua-Kona, HI.

About Charlie’s

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes e-cigarette liquids and vaping systems in the United States and internationally. The company also offers energy drink under the Bazi brand name. It sells its products through distributors, specialty retailers, and third-party online resellers to approximately 80 countries, primarily, including the United Kingdom, Italy, Spain, Belgium, Australia, Sweden, and Canada. The company was formerly known as True Drinks Holdings, Inc. and changed its name to Charlie's Holdings, Inc. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.