Turning Point Brands (NYSE:TPB) and Hempacco (NASDAQ:HPCO) Financial Review

Hempacco (NASDAQ:HPCO) and Turning Point Brands (NYSE:TPB) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Volatility and Risk

Hempacco has a beta of 2.77, suggesting that its share price is 177% more volatile than the S&P 500. Comparatively, Turning Point Brands has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Earnings and Valuation

This table compares Hempacco and Turning Point Brands”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hempacco	$4.05 million	0.00	-$13.13 million	($2.30)	N/A
Turning Point Brands	$507.23 million	3.22	$58.17 million	$2.33	36.20

Turning Point Brands has higher revenue and earnings than Hempacco. Hempacco is trading at a lower price-to-earnings ratio than Turning Point Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Hempacco and Turning Point Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hempacco	0	0	0	0	0.00
Turning Point Brands	1	1	4	0	2.50

Turning Point Brands has a consensus target price of $115.67, indicating a potential upside of 37.14%. Given Turning Point Brands’ stronger consensus rating and higher probable upside, analysts plainly believe Turning Point Brands is more favorable than Hempacco.

Insider & Institutional Ownership

7.6% of Hempacco shares are owned by institutional investors. Comparatively, 96.1% of Turning Point Brands shares are owned by institutional investors. 44.8% of Hempacco shares are owned by insiders. Comparatively, 5.4% of Turning Point Brands shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hempacco	N/A	N/A	N/A
Turning Point Brands	8.78%	11.35%	5.69%

Summary

Turning Point Brands beats Hempacco on 11 of the 13 factors compared between the two stocks.

About Hempacco

Hempacco Co., Inc. engages in the manufacture and sale of smokable hemp and herb products in California. It offers The Real Stuff hemp smokables and flavored hemp rolling papers. The company was incorporated in 2019 and is headquartered in San Diego, California. Hempacco Co., Inc. is a subsidiary of Green Globe International, Inc.

About Turning Point Brands

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker’s Products, and Creative Distribution Solutions. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand. The Stoker’s Products segment manufactures and markets moist snuff tobacco and loose-leaf chewing tobacco products under the Stoker’s, Beech-Nut, Durango, Trophy, and Wind River brands. Its Creative Distribution Solutions segment market and distribute other products without tobacco and/or nicotine to individual consumers through VaporFi B2C online platform, as well as non-traditional retail through VaporBeast. In addition, it markets and distributes cannabis accessories and tobacco products. The company sells its products to wholesale distributors and retail merchants in the independent and chain convenience stores, tobacco outlets, food stores, mass merchandising, 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 founded in 1988 and is headquartered in Louisville, Kentucky.