Green Thumb Industries (OTC:GTBIF) versus Verano (OTCMKTS:VRNOF) Head-To-Head Review

Green Thumb Industries (OTC:GTBIF) and Verano (OTCMKTS:VRNOF) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Risk & Volatility

Green Thumb Industries has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Verano has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Green Thumb Industries shares are owned by institutional investors. Comparatively, 9.0% of Verano shares are owned by institutional investors. 10.4% of Green Thumb Industries shares are owned by insiders. Comparatively, 10.4% of Verano 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.

Earnings & Valuation

This table compares Green Thumb Industries and Verano”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Green Thumb Industries	$1.05 billion	1.22	$36.27 million	$0.30	20.17
Verano	$938.45 million	0.25	-$117.35 million	($0.97)	-0.67

Green Thumb Industries has higher revenue and earnings than Verano. Verano is trading at a lower price-to-earnings ratio than Green Thumb Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Green Thumb Industries and Verano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Green Thumb Industries	5.68%	3.65%	2.52%
Verano	-16.31%	-7.48%	-4.03%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Green Thumb Industries and Verano, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Green Thumb Industries	0	0	0	3	4.00
Verano	0	0	1	2	3.67

Verano has a consensus target price of $7.00, suggesting a potential upside of 976.92%. Given Verano’s higher possible upside, analysts plainly believe Verano is more favorable than Green Thumb Industries.

Summary

Green Thumb Industries beats Verano on 11 of the 14 factors compared between the two stocks.

About Green Thumb Industries

Green Thumb Industries Inc. manufactures, distributes, markets, and sells of cannabis products for medical and adult-use in the United States. It operates through two segments, Retail and Consumer Packaged Goods. The company offers cannabis flower; processed and packaged products, including pre-rolls, concentrates, vapes, capsules, tinctures, edibles, topicals, and other cannabis-related products under the &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RHYTHM brands. It distributes its products primarily to third-party retail customers and sells finished products directly to consumers in its own retail stores, as well as direct-to consumer delivery channel. Green Thumb Industries Inc. was founded in 2014 and is headquartered in Chicago, Illinois.

About Verano

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.