Special Diversified Opportunities (OTCMKTS:SDOIA) and Turning Point Brands (NYSE:TPB) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Special Diversified Opportunities and Turning Point Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Special Diversified Opportunities 0 0 0 0 N/A
Turning Point Brands 0 0 2 0 3.00

Turning Point Brands has a consensus price target of $45.00, suggesting a potential upside of 56.79%.

Valuation & Earnings

This table compares Special Diversified Opportunities and Turning Point Brands’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Special Diversified Opportunities N/A N/A N/A N/A N/A
Turning Point Brands $285.78 million 1.96 $20.20 million $1.08 26.57

Turning Point Brands has higher revenue and earnings than Special Diversified Opportunities.

Profitability

This table compares Special Diversified Opportunities and Turning Point Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Special Diversified Opportunities N/A N/A N/A
Turning Point Brands 7.64% 48.99% 10.17%

Insider & Institutional Ownership

30.5% of Turning Point Brands shares are held by institutional investors. 10.2% of Special Diversified Opportunities shares are held by company insiders. Comparatively, 6.9% of Turning Point Brands shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Turning Point Brands pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Special Diversified Opportunities does not pay a dividend. Turning Point Brands pays out 14.8% of its earnings in the form of a dividend.

Summary

Turning Point Brands beats Special Diversified Opportunities on 7 of the 9 factors compared between the two stocks.

Special Diversified Opportunities Company Profile

Standard Diversified Opportunities Inc., formerly Special Diversified Opportunities Inc., is a shell company. The Company’s board of directors has been exploring strategic alternatives to maximize shareholder value going forward, including deploying the proceeds of the Asset Sale in business acquisition opportunities, merging with another company, or other actions to redeploy the Company’s capital, including, without limitation, distribution of cash to its shareholders. Prior to the completion of the Asset Sale, the Company was a biotechnology company, which was engaged in developing, commercializing and marketing products, services and solutions that preserve and enhance the human health and wellness. The Company has not generated any revenues.

Turning Point Brands Company Profile

Turning Point Brands, Inc., together with its subsidiaries, provides other tobacco products primarily in the United States. It operates through three segments: Smokeless Products, Smoking Products, and NewGen Products. The Smokeless Products segment manufactures and markets moist snuff; and contracts for and markets loose leaf chewing tobacco products. The Smoking Products segment imports and markets cigarette papers, tubes, and related products, as well as finished cigars, make-your-own cigar tobaccos, and cigar wraps; and processes, packages, and markets pipe tobaccos. The NewGen Products segment markets and distributes liquid vapor products, tobacco vaporizer products, and other products without tobacco and nicotine, including e-cigarettes, e-liquids, vaporizers, and other related products; and distributes various assortments of vaping products to non-traditional retail outlets through VaporBeast and Vapor Shark, as well as distributes various vaping related products to individual consumers through Vapor Shark branded retail outlets. The company sells its products under the Zig-Zag, Beech-Nut, Stoker's, Trophy, Havana Blossom, Durango, Our Pride, Big Mountain, Appalachia, Springfield Standard, Snake River, Tequila Sunrise, Fred's Choice, Old Hillside, Red Cap, Tennessee Chew, VaporBeast, and Vapor Shark brands. It sells its products to wholesale distributors and retail merchants in the independent and chain convenience store, tobacco outlet, food store, mass merchandising, and drug store and non-traditional retail channels. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. Turning Point Brands, Inc. was incorporated in 2004 and is headquartered in Louisville, Kentucky.

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