Cannabis Sativa (OTCMKTS: CBDS) and NutriSystem (NASDAQ:NTRI) are both small-cap services companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

92.5% of NutriSystem shares are owned by institutional investors. 2.4% of NutriSystem shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cannabis Sativa and NutriSystem, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cannabis Sativa 0 0 0 0 N/A
NutriSystem 0 1 7 0 2.88

NutriSystem has a consensus price target of $68.63, suggesting a potential upside of 39.34%. Given NutriSystem’s higher probable upside, analysts clearly believe NutriSystem is more favorable than Cannabis Sativa.

Profitability

This table compares Cannabis Sativa and NutriSystem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cannabis Sativa -933.35% -110.30% -65.71%
NutriSystem 8.27% 49.69% 30.87%

Volatility & Risk

Cannabis Sativa has a beta of -7.48, suggesting that its stock price is 848% less volatile than the S&P 500. Comparatively, NutriSystem has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Dividends

NutriSystem pays an annual dividend of $0.70 per share and has a dividend yield of 1.4%. Cannabis Sativa does not pay a dividend. NutriSystem pays out 37.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Cannabis Sativa and NutriSystem’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cannabis Sativa N/A N/A N/A ($0.38) -9.99
NutriSystem $545.45 million 2.71 $35.46 million $1.85 26.62

NutriSystem has higher revenue and earnings than Cannabis Sativa. Cannabis Sativa is trading at a lower price-to-earnings ratio than NutriSystem, indicating that it is currently the more affordable of the two stocks.

Summary

NutriSystem beats Cannabis Sativa on 11 of the 12 factors compared between the two stocks.

Cannabis Sativa Company Profile

Cannabis Sativa, Inc. develops and promotes natural cannabis products. The Company is engaged in the research, development and licensing of natural cannabis products, including cannabis formulas, edibles, topicals, strains, recipes and delivery systems. The Company plans to develop, produce and market products through joint ventures with companies licensed under state regulations applicable to cannabis businesses. It holds the license for a medicinal cannabis strain called NZT, a cannabis lozenge delivery methodology, and a cannabis trauma cream formula. The Company is also developing a third strain of cannabis plant named CT22. The Company also conducts its operations through its subsidiary, Wild Earth Naturals, Inc. (Wild Earth). Wild Earth is an herbal skin care products formulation and marketing company that plans to target the natural healthcare products market in the United States and abroad. It offers Go Deep, Go Deep EXTRA (GDX), Face Garden, Body Garden and Lip Garden.

NutriSystem Company Profile

Nutrisystem, Inc. is a provider of weight management products and services, including nutritionally balanced weight loss programs, multi-day kits available at retail locations and digital tools to support weight loss. The Company’s program customers purchase monthly food packages containing four-week meal plan consisting supply of breakfasts, lunches, dinners and snacks and flex meal plan recipes, which they supplement with fresh fruits, vegetables and dairy. Its customers order on an auto-delivery basis (Auto-Delivery), where means it sends a four-week meal plan on an ongoing basis until notified of a customer’s cancellation. The Company offers its pre-selected favorites food pack or personalized plans, where customers can hand pick their entire menu or customize plans to their dietary preference. As of December 31, 2016, its meal plans featured over 150 menu options at different price points, including frozen and ready-to-go entrees, desserts, snacks and shakes.

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