Rite Aid (NYSE:RAD) vs. General Cannabis (OTCMKTS:CANN) Financial Comparison


General Cannabis (OTCMKTS:CANNGet Rating) and Rite Aid (NYSE:RADGet Rating) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Institutional & Insider Ownership

56.0% of Rite Aid shares are owned by institutional investors. 38.0% of General Cannabis shares are owned by insiders. Comparatively, 2.3% of Rite Aid shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares General Cannabis and Rite Aid’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Cannabis $5.93 million 4.68 -$8.87 million N/A N/A
Rite Aid $24.57 billion 0.01 -$538.48 million ($9.95) -0.64

General Cannabis has higher earnings, but lower revenue than Rite Aid.

Risk & Volatility

General Cannabis has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Rite Aid has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for General Cannabis and Rite Aid, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Cannabis 0 0 0 0 N/A
Rite Aid 3 0 0 0 1.00

Rite Aid has a consensus price target of $8.33, indicating a potential upside of 30.82%. Given Rite Aid’s higher probable upside, analysts clearly believe Rite Aid is more favorable than General Cannabis.

Profitability

This table compares General Cannabis and Rite Aid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Cannabis -149.64% -128.29% -46.38%
Rite Aid -2.19% -19.38% -0.89%

Summary

Rite Aid beats General Cannabis on 7 of the 10 factors compared between the two stocks.

About General Cannabis (Get Rating)

General Cannabis Corp. provides products and services to the regulated cannabis industry and non-cannabis customers 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 a retail dispensary store in Englewood, Colorado, as well as two retail stores in Portland, Oregon. The company was formerly known as Advanced Cannabis Solutions, Inc. and changed its name to General Cannabis Corp. in June 2015. General Cannabis Corp. was incorporated in 2013 and is headquartered in Denver, Colorado.

About Rite Aid (Get Rating)

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and an assortment of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, pet care, and other every day and convenience products, as well as brand and generic prescription drugs. It also operates retail clinics that provide treatment for common conditions; and provides preventative services. In addition, this segment offers healthcare coaching and disease management services. The Pharmacy Services segment provides integrated suite of pharmacy benefit management (PBM) offerings, including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication, and pharmacy discount programs, as well as drug benefits under the federal government’s Medicare Part D program and insurance offerings for individuals and groups. This segment serves health plans, commercial employers, labor groups, and state and local governments. As of April 28, 2021, the company operated approximately 2,500 retail pharmacy locations in 17 states. Rite Aid Corporation was founded in 1962 and is headquartered in Camp Hill, Pennsylvania.



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