Critical Review: Tilray (NASDAQ:TLRY) & Charlie’s (OTCMKTS:CHUC)

Tilray (NASDAQ:TLRYGet Rating) and Charlie’s (OTCMKTS:CHUCGet Rating) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Insider & Institutional Ownership

13.8% of Tilray shares are owned by institutional investors. Comparatively, 24.3% of Charlie’s shares are owned by institutional investors. 3.2% of Tilray shares are owned by company insiders. Comparatively, 50.5% of Charlie’s shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Tilray and Charlie’s’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tilray $513.09 million 4.40 -$367.42 million $0.19 23.89
Charlie’s $21.50 million 1.05 $4.81 million N/A N/A

Charlie’s has lower revenue, but higher earnings than Tilray.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Tilray and Charlie’s, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tilray 1 7 3 0 2.18
Charlie’s 0 0 0 0 N/A

Tilray currently has a consensus price target of $8.44, indicating a potential upside of 85.90%. Given Tilray’s higher possible upside, research analysts clearly believe Tilray is more favorable than Charlie’s.

Profitability

This table compares Tilray and Charlie’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tilray 6.80% -0.78% -0.59%
Charlie’s 22.37% -93.54% 60.00%

Risk and Volatility

Tilray has a beta of 2.53, suggesting that its share price is 153% more volatile than the S&P 500. Comparatively, Charlie’s has a beta of 5.02, suggesting that its share price is 402% more volatile than the S&P 500.

Summary

Charlie’s beats Tilray on 6 of the 11 factors compared between the two stocks.

Tilray Company Profile (Get Rating)

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Nanaimo, Canada.

Charlie’s Company Profile (Get Rating)

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes e-cigarette liquids and vaping systems in the United States and internationally. The company also offers energy drink under the Bazi brand name. It sells its products through distributors, specialty retailers, and third-party online resellers to approximately 80 countries, primarily, including the United Kingdom, Italy, Spain, Belgium, Australia, Sweden, and Canada. The company was formerly known as True Drinks Holdings, Inc. and changed its name to Charlie's Holdings, Inc. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

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