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

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

Risk and Volatility

High Tide has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, TREES has a beta of -0.53, meaning that its stock price is 153% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
High Tide	-6.62%	3.49%	1.27%
TREES	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$425.10 million	0.49	-$36.23 million	($0.34)	-6.97
TREES	$11.67 million	0.18	-$840,000.00	($0.02)	-0.90

TREES has lower revenue, but higher earnings 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.

Insider & Institutional Ownership

4.5% of High Tide shares are held by institutional investors. Comparatively, 11.3% of TREES shares are held by institutional investors. 12.4% of High Tide shares are held by company insiders. Comparatively, 45.0% of TREES shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent ratings for High Tide and TREES, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	1	0	3	1	2.80
TREES	0	0	0	0	0.00

High Tide currently has a consensus price target of $6.13, suggesting a potential upside of 158.44%. Given High Tide’s stronger consensus rating and higher probable upside, research analysts plainly believe High Tide is more favorable than TREES.

Summary

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

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.

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.