Critical Analysis: Smart for Life (NASDAQ:SMFL) & Jushi (OTCMKTS:JUSHF)

Jushi (OTCMKTS:JUSHF) and Smart for Life (NASDAQ:SMFL) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Jushi and Smart for Life, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jushi	0	1	0	0	2.00
Smart for Life	0	0	0	0	N/A

Insider & Institutional Ownership

21.7% of Jushi shares are held by institutional investors. Comparatively, 28.4% of Smart for Life shares are held by institutional investors. 21.7% of Jushi shares are held by company insiders. Comparatively, 31.7% of Smart for Life shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Jushi and Smart for Life”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jushi	$269.45 million	0.39	-$65.10 million	($0.36)	-1.50
Smart for Life	$11.11 million	0.01	-$29.98 million	($1,115.67)	0.00

Smart for Life has lower revenue, but higher earnings than Jushi. Jushi is trading at a lower price-to-earnings ratio than Smart for Life, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Jushi has a beta of -1.07, suggesting that its share price is 207% less volatile than the S&P 500. Comparatively, Smart for Life has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares Jushi and Smart for Life’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jushi	-22.39%	-5,529.11%	-9.58%
Smart for Life	N/A	N/A	N/A

Summary

Smart for Life beats Jushi on 8 of the 11 factors compared between the two stocks.

About Jushi

Jushi Holdings Inc., a vertically integrated cannabis company, engages in the cultivation, processing, retail, and distribution of medical and adult-use products. It focuses on building a portfolio of cannabis assets in various jurisdictions in Pennsylvania, Virginia, Ohio, Illinois, California, Nevada, and Massachusetts. The company also offers hemp-based CBD products, including cannabis dry flower, vaporizer forms of cannabis, edibles, cannabis oil in capsules, tinctures, cannabis in topical products, and other cannabis products, as well as vape cartridges, disposables, and concentrates under The Bank, The Lab, Nira+ Medicinals, Sèchè, Tasteology, and Hijinks brands. In addition, it operates medical cannabis dispensaries under the BEYOND/HELLO, Nature's Remedy, and NuLeaf brands. The company is headquartered in Boca Raton, Florida.

About Smart for Life

Smart for Life, Inc. acquires, develops, manufactures, operates, markets, and sells nutraceutical and related products in the United States and internationally. It offers natural health and wellness meal replacement products, including nutrition bars, cookies, soups and shakes, vitamins, and supplements under the Smart for Life brand; dietary supplements; and nutritional products, including whey protein isolate powder, tablet supplements for joint health, nitric oxide, post workout blends, Omega-3 supplements, and pre-workout supplements under the Sports Illustrated Nutrition brand for athletes and active lifestyle consumers. The company also provides various nutritional products, including antioxidant rich supplements, plant-based proteins, alkalizing nutrients, and weight management products. It sells its products through online market platforms. The company was formerly known as Bonne Santé Group, Inc. and changed its name to Smart for Life, Inc. in August 2021. Smart for Life, Inc. was founded in 2002 and is based in Boca Raton, Florida.