Critical Comparison: Charlie’s (OTCMKTS:CHUC) versus PotNetwork (OTCMKTS:POTN)

Charlie’s (OTCMKTS:CHUCGet Rating) and PotNetwork (OTCMKTS:POTNGet Rating) are both small-cap consumer staples companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Charlie’s and PotNetwork, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Charlie’s 0 0 0 0 N/A
PotNetwork 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Charlie’s 8.40% 69.27% 25.33%
PotNetwork N/A N/A N/A

Valuation and Earnings

This table compares Charlie’s and PotNetwork’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Charlie’s $21.50 million 1.68 $4.81 million N/A N/A
PotNetwork $9.68 million 0.02 -$5.59 million N/A N/A

Charlie’s has higher revenue and earnings than PotNetwork.

Volatility & Risk

Charlie’s has a beta of 4.7, meaning that its share price is 370% more volatile than the S&P 500. Comparatively, PotNetwork has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

24.2% of Charlie’s shares are held by institutional investors. 50.5% of Charlie’s shares are held by company insiders. Comparatively, 0.2% of PotNetwork shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Charlie’s beats PotNetwork on 9 of the 9 factors compared between the two stocks.

About Charlie’s

(Get Rating)

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes nicotine-based vapor products in the United States and internationally. It sells its products through distributors, specialty retailers, and third-party online resellers to approximately 80 countries, primarily, including the United Kingdom, Italy, Spain, New Zealand, Australia, 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.

About PotNetwork

(Get Rating)

PotNetwork Holdings, Inc., through its subsidiaries, engages in the development and sale of hemp-derived cannabidiol (CBD) oil products. It offers flavored and unflavored oils; vaping pens and additives; edibles, such as chewable gummies and lollipops; capsules; beverage energy/relaxation shots; topical application creams in various concentrations; dog and cat wellness products in various dosages and delivery formats; skin care, bath, and body products; and hemp flowers. The company provides its products under various brands, including Diamond CBD, Chill, Relax, MediPets, and Meds BioTech, as well as various other brands. It sells its products through distributors and resellers, as well as through its Website. The company is based in Fort Lauderdale, Florida.

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