Contrasting FitLife Brands (NASDAQ:FTLF) & TerrAscend (OTCMKTS:TSNDF)

TerrAscend (OTCMKTS:TSNDF) and FitLife Brands (NASDAQ:FTLF) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

TerrAscend has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, FitLife Brands has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares TerrAscend and FitLife Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-42.72%	-18.32%	-4.36%
FitLife Brands	9.57%	19.55%	10.51%

Institutional & Insider Ownership

5.8% of TerrAscend shares are owned by institutional investors. Comparatively, 2.3% of FitLife Brands shares are owned by institutional investors. 32.2% of TerrAscend shares are owned by insiders. Comparatively, 61.4% of FitLife Brands 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 TerrAscend and FitLife Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TerrAscend	$306.68 million	0.59	-$80.23 million	($0.41)	-1.44
FitLife Brands	$64.47 million	2.07	$8.98 million	$0.57	24.96

FitLife Brands has lower revenue, but higher earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than FitLife Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TerrAscend and FitLife Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	2	3.33
FitLife Brands	0	2	2	0	2.50

FitLife Brands has a consensus target price of $23.00, indicating a potential upside of 61.63%. Given FitLife Brands’ higher possible upside, analysts plainly believe FitLife Brands is more favorable than TerrAscend.

Summary

FitLife Brands beats TerrAscend on 9 of the 14 factors compared between the two stocks.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.

About FitLife Brands

FitLife Brands, Inc. provides nutritional supplements for health-conscious consumers in the United States and internationally. The company provides weight loss, sports nutrition, and general health products; sports nutrition products; weight loss and sports nutrition products; sports nutrition and general wellness formulations with an emphasis on natural, vegan, and organic ingredients; and male health and weight loss products, as well as other diet, health, and sports nutrition supplements and related products; and value-oriented sports nutrition and weight loss products. It offers MRC products which includes general health supplements; and natural skincare and beauty products. In addition, it markets its products under the brand names of NDS Nutrition, PMD Sports, SirenLabs, CoreActive, Nutrology, Metis Nutrition, iSatori, BioGenetic Laboratories, Energize, Dr. Tobias, All-Natural Advice, and Maritime Naturals through franchised stores, as well as through retail locations, which include specialty, mass, and online. The company was formerly known as Bond Laboratories, Inc. and changed its name to FitLife Brands, Inc. in September 2013. FitLife Brands, Inc. was incorporated in 2005 and is headquartered in Omaha, Nebraska.