Critical Contrast: High Tide (NASDAQ:HITI) versus Organigram Global (NASDAQ:OGI)

Organigram Global (NASDAQ:OGI) and High Tide (NASDAQ:HITI) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Analyst Recommendations

This is a breakdown of current ratings for Organigram Global and High Tide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organigram Global	1	0	0	0	1.00
High Tide	1	0	2	1	2.75

High Tide has a consensus target price of $6.13, indicating a potential upside of 144.02%. Given High Tide’s stronger consensus rating and higher possible upside, analysts plainly believe High Tide is more favorable than Organigram Global.

Profitability

This table compares Organigram Global and High Tide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organigram Global	2.86%	-8.19%	-5.79%
High Tide	-1.66%	-6.50%	-3.84%

Risk and Volatility

Organigram Global has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, High Tide has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Insider & Institutional Ownership

34.6% of Organigram Global shares are owned by institutional investors. Comparatively, 4.5% of High Tide shares are owned by institutional investors. 0.1% of Organigram Global shares are owned by insiders. Comparatively, 12.4% of High Tide 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.

Valuation & Earnings

This table compares Organigram Global and High Tide”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organigram Global	$117.47 million	1.92	-$33.39 million	$0.05	33.40
High Tide	$568.25 million	0.39	-$3.19 million	($0.08)	-31.38

High Tide has higher revenue and earnings than Organigram Global. High Tide is trading at a lower price-to-earnings ratio than Organigram Global, indicating that it is currently the more affordable of the two stocks.

Summary

High Tide beats Organigram Global on 9 of the 15 factors compared between the two stocks.

About Organigram Global

Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.