Comparing Cannabis Wheaton Income (OTCMKTS:CBWTF) and Atlanticus (NASDAQ:ATLC)

Cannabis Wheaton Income (OTCMKTS:CBWTF) and Atlanticus (NASDAQ:ATLC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Profitability

This table compares Cannabis Wheaton Income and Atlanticus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannabis Wheaton Income	31.08%	32.62%	17.03%
Atlanticus	7.46%	22.86%	2.86%

Analyst Ratings

This is a summary of current recommendations for Cannabis Wheaton Income and Atlanticus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannabis Wheaton Income	0	0	0	0	0.00
Atlanticus	0	2	4	0	2.67

Atlanticus has a consensus target price of $88.75, suggesting a potential upside of 64.41%. Given Atlanticus’ stronger consensus rating and higher possible upside, analysts clearly believe Atlanticus is more favorable than Cannabis Wheaton Income.

Institutional and Insider Ownership

14.2% of Atlanticus shares are owned by institutional investors. 4.6% of Cannabis Wheaton Income shares are owned by company insiders. Comparatively, 51.8% of Atlanticus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Cannabis Wheaton Income and Atlanticus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannabis Wheaton Income	$89.29 million	1.37	-$11.93 million	$0.03	2.98
Atlanticus	$1.31 billion	0.62	$111.30 million	$5.63	9.59

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

Volatility and Risk

Cannabis Wheaton Income has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Atlanticus has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500.

Summary

Atlanticus beats Cannabis Wheaton Income on 10 of the 14 factors compared between the two stocks.

About Cannabis Wheaton Income

Auxly Cannabis Group Inc. operates as a consumer packaged goods company in the cannabis products market in Canada. It focuses on developing, manufacturing, and distributing cannabis products for wellness and recreational consumers. The company offers cannabis products under various forms, including vape catridges, infused pre-rolls, pre-rolled, vape pens, milled and dried flower, concentrates, chocolates, soft chews, oil drops, capsules, and topicals under the KOLAB PROJECT, Dosecann, BACK FORTY, Foray, and Parcel brand names. It sells its products through supply arrangements with provincial control boards and distributors, medical cannabis sales channels, and retailers, as well as to authorized wholesalers. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. The company was incorporated in 1987 and is headquartered in Toronto, Canada.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.