Financial Analysis: Cannabis Sativa (CBDS) versus Weight Watchers International (WTW)
Cannabis Sativa (OTCMKTS: CBDS) and Weight Watchers International (NYSE:WTW) are both services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
86.5% of Weight Watchers International shares are owned by institutional investors. 15.8% of Weight Watchers International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Cannabis Sativa and Weight Watchers International’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%|
Volatility and Risk
Cannabis Sativa has a beta of -7.47, suggesting that its share price is 847% less volatile than the S&P 500. Comparatively, Weight Watchers International has a beta of 2.96, suggesting that its share price is 196% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Cannabis Sativa and Weight Watchers International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weight Watchers International||1||1||1||0||2.00|
Weight Watchers International has a consensus target price of $38.67, indicating a potential downside of 17.92%. Given Weight Watchers International’s higher probable upside, analysts clearly believe Weight Watchers International is more favorable than Cannabis Sativa.
Earnings & Valuation
This table compares Cannabis Sativa and Weight Watchers International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weight Watchers International||$1.16 billion||2.61||$67.69 million||$1.68||28.04|
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.
Weight Watchers International beats Cannabis Sativa on 10 of the 10 factors compared between the two stocks.
About Cannabis Sativa
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.
About Weight Watchers International
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.
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