Contrasting General Cannabis (OTCMKTS:CANN) & Rite Aid (NYSE:RAD)

General Cannabis (OTCMKTS:CANNGet Rating) and Rite Aid (NYSE:RADGet Rating) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Profitability

This table compares General Cannabis and Rite Aid’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Cannabis -149.64% -128.29% -46.38%
Rite Aid -2.19% -19.38% -0.89%

Risk and Volatility

General Cannabis has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Rite Aid has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

65.7% of Rite Aid shares are held by institutional investors. 38.0% of General Cannabis shares are held by company insiders. Comparatively, 2.3% of Rite Aid shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for General Cannabis and Rite Aid, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Cannabis 0 0 0 0 N/A
Rite Aid 3 0 0 0 1.00

Rite Aid has a consensus target price of $8.33, indicating a potential upside of 45.94%. Given Rite Aid’s higher probable upside, analysts clearly believe Rite Aid is more favorable than General Cannabis.

Valuation and Earnings

This table compares General Cannabis and Rite Aid’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Cannabis $5.93 million 4.34 -$8.87 million N/A N/A
Rite Aid $24.57 billion 0.01 -$538.48 million ($9.95) -0.57

General Cannabis has higher earnings, but lower revenue than Rite Aid.

Summary

Rite Aid beats General Cannabis on 7 of the 10 factors compared between the two stocks.

General Cannabis Company Profile (Get Rating)

General Cannabis Corp. provides products and services to the regulated cannabis industry and non-cannabis customers in the United States. The company operates through Retail and Cultivation segments. It operates a licensed 17,000 square foot light deprivation greenhouse cultivation facility; and a retail dispensary store in Englewood, Colorado, as well as two retail stores in Portland, Oregon. The company was formerly known as Advanced Cannabis Solutions, Inc. and changed its name to General Cannabis Corp. in June 2015. General Cannabis Corp. was incorporated in 2013 and is headquartered in Denver, Colorado.

Rite Aid Company Profile (Get Rating)

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and provides various other pharmacy services and an assortment of products comprising over-the-counter medications, health and beauty aids, personal care products, seasonal merchandise, cosmetics, household items, food and beverages, greeting cards, seasonal and general merchandise, pet care, and a variety of other everyday and convenience products, as well as brand and generic prescription drugs; and a private brand product line. It also operates retail pharmacies and clinics; and offers healthcare services, including administering immunizations for COVID-19, the flu, shingles, and others; assists its customers with high blood pressure, cholesterol, and diabetes; provides guidance on combating obesity and tobacco addiction; and educates customers on managing medications and potential side effects. In addition, this segment offers healthcare coaching and disease management services to health plans and employers. The Pharmacy Services segment provides integrated suite of pharmacy benefit management (PBM) offerings, including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication, and pharmacy discount programs, as well as drug benefits under the federal government's Medicare Part D program and insurance offerings for individuals and groups. This segment serves health plans, commercial employers, labor groups, and state and local governments. As of February 26, 2022, the company operated 2,450 retail pharmacy locations in 17 states. Rite Aid Corporation was founded in 1962 and is headquartered in Camp Hill, Pennsylvania.

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