Critical Survey: Universal (NYSE:UVV) versus Gilla (OTCMKTS:GLLA)

Gilla (OTCMKTS:GLLA) and Universal (NYSE:UVV) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Earnings and Valuation

This table compares Gilla and Universal”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilla	N/A	N/A	N/A	N/A	N/A
Universal	$2.92 billion	0.39	$32.64 million	$0.77	60.18

Universal has higher revenue and earnings than Gilla.

Analyst Recommendations

This is a summary of current ratings for Gilla and Universal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilla	0	0	0	0	0.00
Universal	0	2	0	0	2.00

Profitability

This table compares Gilla and Universal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilla	N/A	N/A	N/A
Universal	0.67%	3.50%	1.74%

Volatility and Risk

Gilla has a beta of 13.33, meaning that its stock price is 1,233% more volatile than the S&P 500. Comparatively, Universal has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Insider & Institutional Ownership

81.0% of Universal shares are held by institutional investors. 2.2% of Universal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Universal beats Gilla on 7 of the 8 factors compared between the two stocks.

About Gilla

Gilla Inc. engages in the manufacture, marketing, and distribution of generic and premium branded e-liquid used in vaporizers, electronic cigarettes, and other vaping hardware and accessories in Europe, Canada, and the United States. The company offers its products under the brand names of Spectrum Concentrates, Coil Glaze, Craft Vapes, Siren, The Drip Factory, Shake It, Surf Sauce, Ohana, Moshi, Crisp, Just Fruit, Vinto Vape, Vapor's Dozen, Enriched Vapor, and Crown E-liquid. Gilla Inc. sells its products through market channels, including vape shops, retail and wholesale distributors, convenience stores, and e-commerce Websites. The company is headquartered in Daytona Beach, Florida.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.