Weight Watchers International (NYSE: WTW) and Cannabis Sativa (OTCMKTS:CBDS) are both non-cyclical consumer goods & services companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Profitability

This table compares Weight Watchers International and Cannabis Sativa’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weight Watchers International 9.03% -8.81% 7.94%
Cannabis Sativa -933.35% -110.30% -65.71%

Volatility & Risk

Weight Watchers International has a beta of 2.99, suggesting that its share price is 199% more volatile than the S&P 500. Comparatively, Cannabis Sativa has a beta of -7.48, suggesting that its share price is 848% less volatile than the S&P 500.

Insider and Institutional Ownership

86.5% of Weight Watchers International shares are held by institutional investors. 15.8% of Weight Watchers International 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.

Valuation & Earnings

This table compares Weight Watchers International and Cannabis Sativa’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weight Watchers International $1.16 billion 2.44 $67.69 million $1.68 26.23
Cannabis Sativa N/A N/A N/A ($0.38) -10.45

Weight Watchers International has higher revenue and earnings than Cannabis Sativa. Cannabis Sativa is trading at a lower price-to-earnings ratio than Weight Watchers International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Weight Watchers International and Cannabis Sativa, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weight Watchers International 1 1 1 0 2.00
Cannabis Sativa 0 0 0 0 N/A

Weight Watchers International currently has a consensus price target of $38.67, suggesting a potential downside of 12.26%. Given Weight Watchers International’s higher probable upside, equities analysts clearly believe Weight Watchers International is more favorable than Cannabis Sativa.

Summary

Weight Watchers International beats Cannabis Sativa on 10 of the 10 factors compared between the two stocks.

Weight Watchers International Company Profile

Weight Watchers International, Inc. is a provider of weight management services. The Company operates globally through a network of Company-owned and franchise operations. The Company’s branded products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites, mobile sites and applications, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications. It operates through four segments: North America, United Kingdom, Continental Europe (CE) and Other. It sells a range of products, including bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits, and certain third-party products, such as activity-tracking monitors. It sells its products through its meetings business, online and to its franchisees. It includes a range of nutritional, activity, behavioral and lifestyle tools.

Cannabis Sativa Company Profile

Cannabis Sativa, Inc. develops and promotes natural cannabis products. The Company is engaged in the research, development and licensing of natural cannabis products, including cannabis formulas, edibles, topicals, strains, recipes and delivery systems. The Company plans to develop, produce and market products through joint ventures with companies licensed under state regulations applicable to cannabis businesses. It holds the license for a medicinal cannabis strain called NZT, a cannabis lozenge delivery methodology, and a cannabis trauma cream formula. The Company is also developing a third strain of cannabis plant named CT22. The Company also conducts its operations through its subsidiary, Wild Earth Naturals, Inc. (Wild Earth). Wild Earth is an herbal skin care products formulation and marketing company that plans to target the natural healthcare products market in the United States and abroad. It offers Go Deep, Go Deep EXTRA (GDX), Face Garden, Body Garden and Lip Garden.

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