Cannabis Sativa (OTCMKTS: CBDS) and NutriSystem (NASDAQ:NTRI) are both small-cap services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Cannabis Sativa and NutriSystem, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cannabis Sativa 0 0 0 0 N/A
NutriSystem 0 1 7 0 2.88

NutriSystem has a consensus target price of $68.75, suggesting a potential upside of 30.70%. Given NutriSystem’s higher possible upside, analysts plainly believe NutriSystem is more favorable than Cannabis Sativa.

Volatility & Risk

Cannabis Sativa has a beta of -7.47, meaning that its share price is 847% less volatile than the S&P 500. Comparatively, NutriSystem has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cannabis Sativa and NutriSystem’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cannabis Sativa N/A N/A N/A ($0.38) -16.89
NutriSystem $545.45 million 2.90 $35.46 million $1.83 28.74

NutriSystem has higher revenue and earnings than Cannabis Sativa. Cannabis Sativa is trading at a lower price-to-earnings ratio than NutriSystem, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.5% of NutriSystem shares are owned by institutional investors. 2.4% of NutriSystem shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

NutriSystem pays an annual dividend of $0.70 per share and has a dividend yield of 1.3%. Cannabis Sativa does not pay a dividend. NutriSystem pays out 38.3% of its earnings in the form of a dividend.

Profitability

This table compares Cannabis Sativa and NutriSystem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cannabis Sativa -933.35% -110.30% -65.71%
NutriSystem 8.27% 49.69% 30.87%

Summary

NutriSystem beats Cannabis Sativa on 12 of the 13 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 NutriSystem

Nutrisystem, Inc. is a provider of weight management products and services, including nutritionally balanced weight loss programs, multi-day kits available at retail locations and digital tools to support weight loss. The Company’s program customers purchase monthly food packages containing four-week meal plan consisting supply of breakfasts, lunches, dinners and snacks and flex meal plan recipes, which they supplement with fresh fruits, vegetables and dairy. Its customers order on an auto-delivery basis (Auto-Delivery), where means it sends a four-week meal plan on an ongoing basis until notified of a customer’s cancellation. The Company offers its pre-selected favorites food pack or personalized plans, where customers can hand pick their entire menu or customize plans to their dietary preference. As of December 31, 2016, its meal plans featured over 150 menu options at different price points, including frozen and ready-to-go entrees, desserts, snacks and shakes.

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