Head-To-Head Contrast: Lithia Motors (NYSE:LAD) versus High Tide (NASDAQ:HITI)

High Tide (NASDAQ:HITI) and Lithia Motors (NYSE:LAD) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Risk and Volatility

High Tide has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Earnings and Valuation

This table compares High Tide and Lithia Motors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$425.10 million	0.51	-$36.23 million	($0.31)	-7.90
Lithia Motors	$37.63 billion	0.22	$819.60 million	$30.15	12.34

Lithia Motors has higher revenue and earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Lithia Motors, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

4.5% of High Tide shares are owned by institutional investors. 12.4% of High Tide shares are owned by insiders. Comparatively, 1.1% of Lithia Motors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for High Tide and Lithia Motors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	1	0	3	1	2.80
Lithia Motors	0	5	6	0	2.55

High Tide presently has a consensus price target of $5.62, indicating a potential upside of 129.59%. Lithia Motors has a consensus price target of $436.33, indicating a potential upside of 17.31%. Given High Tide’s stronger consensus rating and higher probable upside, research analysts plainly believe High Tide is more favorable than Lithia Motors.

Profitability

This table compares High Tide and Lithia Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
High Tide	-6.62%	3.59%	1.24%
Lithia Motors	1.88%	12.16%	3.14%

Summary

Lithia Motors beats High Tide on 9 of the 15 factors compared between the two stocks.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.

About Lithia Motors

Lithia Motors, Inc. operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles. The company sells its products and services through the Driveway and Greencars brand names through a network of locations, e-commerce platforms, and captive finance solutions. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.