Analyzing TREES (OTCMKTS:CANN) and High Tide (NASDAQ:HITI)

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

Volatility & Risk

TREES has a beta of -0.54, indicating that its share price is 154% less volatile than the S&P 500. Comparatively, High Tide has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Insider and Institutional Ownership

11.3% of TREES shares are held by institutional investors. Comparatively, 4.5% of High Tide shares are held by institutional investors. 45.0% of TREES shares are held by company insiders. Comparatively, 12.4% of High Tide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TREES	$11.67 million	0.18	-$840,000.00	($0.02)	-0.90
High Tide	$671.35 million	0.29	-$36.23 million	($0.31)	-7.16

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

Analyst Ratings

This is a summary of recent recommendations and price targets for TREES and High Tide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TREES	0	0	0	0	0.00
High Tide	1	0	2	1	2.75

High Tide has a consensus target price of $7.25, suggesting a potential upside of 226.58%. Given High Tide’s stronger consensus rating and higher probable upside, analysts clearly believe High Tide is more favorable than TREES.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TREES	N/A	N/A	N/A
High Tide	-6.62%	3.59%	1.24%

Summary

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

About TREES

Trees Corporation provides products and services to the regulated cannabis industry in the United States. The company operates through Retail and Cultivation segments. It operates a licensed 17,000 square foot light deprivation greenhouse cultivation facility; and retail dispensary store in Englewood, Colorado, as well as retail stores in Portland, Oregon. The company was formerly known as General Cannabis Corp. and changed its name to Trees Corporation in June 2022. Trees Corporation was incorporated in 2013 and is headquartered in Lakewood, Colorado.

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.