Contrasting High Tide (NASDAQ:HITI) & Best Buy (NYSE:BBY)

High Tide (NASDAQ:HITI) and Best Buy (NYSE:BBY) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

4.5% of High Tide shares are held by institutional investors. Comparatively, 81.0% of Best Buy shares are held by institutional investors. 12.4% of High Tide shares are held by company insiders. Comparatively, 0.5% of Best Buy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for High Tide and Best Buy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	1	0	3	1	2.80
Best Buy	2	14	6	0	2.18

High Tide currently has a consensus price target of $5.62, suggesting a potential upside of 128.66%. Best Buy has a consensus price target of $83.10, suggesting a potential downside of 5.04%. Given High Tide’s stronger consensus rating and higher probable upside, research analysts clearly believe High Tide is more favorable than Best Buy.

Volatility & Risk

High Tide has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares High Tide and Best Buy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$671.35 million	0.32	-$36.23 million	($0.31)	-7.94
Best Buy	$41.86 billion	0.44	$1.07 billion	$5.40	16.21

Best Buy has higher revenue and earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Best Buy, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
High Tide	-6.62%	3.59%	1.24%
Best Buy	2.73%	48.70%	9.03%

Summary

Best Buy beats High Tide on 11 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 Best Buy

Best Buy Co., Inc. engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides delivery, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, Buy Mobile, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen, Home, TechLiquidators, and Yardbird brands, as well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.