Financial Analysis: Lendway (NASDAQ:LDWY) and TerrAscend (OTCMKTS:TSNDF)

Lendway (NASDAQ:LDWY) and TerrAscend (OTCMKTS:TSNDF) are both small-cap business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares Lendway and TerrAscend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lendway	N/A	-21.56%	-4.32%
TerrAscend	-23.95%	-31.48%	-11.40%

Risk and Volatility

Lendway has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Lendway and TerrAscend, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendway	0	0	0	0	0.00
TerrAscend	0	1	0	1	3.00

Insider & Institutional Ownership

6.6% of Lendway shares are owned by institutional investors. Comparatively, 5.8% of TerrAscend shares are owned by institutional investors. 13.2% of Lendway shares are owned by company insiders. Comparatively, 31.9% of TerrAscend shares are owned 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.

Earnings & Valuation

This table compares Lendway and TerrAscend”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendway	$31.58 million	0.27	$2.41 million	($1.98)	-2.44
TerrAscend	$317.33 million	0.53	-$95.54 million	N/A	N/A

Lendway has higher earnings, but lower revenue than TerrAscend.

Summary

Lendway beats TerrAscend on 6 of the 11 factors compared between the two stocks.

About Lendway

Lendway, Inc. operates as a specialty agricultural and finance company focusing on making and managing its agricultural investments in the United States and internationally. It owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or originate and fund new loans domestically. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.