General Cannabis (OTCMKTS:CANN – Get Rating) and Rite Aid (NYSE:RAD – Get Rating) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
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% |
Insider & Institutional 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.
Volatility and Risk
General Cannabis has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Rite Aid has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets 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 price target of $8.33, suggesting a potential upside of 29.00%. Given Rite Aid’s higher possible 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 | 4.79 | -$8.87 million | N/A | N/A |
| Rite Aid | $24.57 billion | 0.01 | -$538.48 million | ($9.95) | -0.65 |
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 an assortment of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, pet care, and other every day and convenience products, as well as brand and generic prescription drugs. It also operates retail clinics that provide treatment for common conditions; and provides preventative services. In addition, this segment offers healthcare coaching and disease management services. 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 April 28, 2021, the company operated approximately 2,500 retail pharmacy locations in 17 states. Rite Aid Corporation was founded in 1962 and is headquartered in Camp Hill, Pennsylvania.
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