Critical Contrast: Shineco (NASDAQ:SISI) and Green Thumb Industries (OTC:GTBIF)

Shineco (NASDAQ:SISI) and Green Thumb Industries (OTC:GTBIF) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Profitability

This table compares Shineco and Green Thumb Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shineco	-245.08%	-64.49%	-29.05%
Green Thumb Industries	5.68%	3.65%	2.52%

Volatility & Risk

Shineco has a beta of -0.3, meaning that its share price is 130% less volatile than the S&P 500. Comparatively, Green Thumb Industries has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares Shineco and Green Thumb Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shineco	$11.07 million	0.16	-$22.45 million	N/A	N/A
Green Thumb Industries	$1.05 billion	1.11	$36.27 million	$0.30	18.40

Green Thumb Industries has higher revenue and earnings than Shineco.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Shineco and Green Thumb Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shineco	0	0	0	0	0.00
Green Thumb Industries	0	0	0	3	4.00

Insider & Institutional Ownership

4.1% of Shineco shares are held by institutional investors. Comparatively, 0.1% of Green Thumb Industries shares are held by institutional investors. 0.6% of Shineco shares are held by insiders. Comparatively, 10.4% of Green Thumb Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Green Thumb Industries beats Shineco on 10 of the 11 factors compared between the two stocks.

About Shineco

Shineco, Inc., through its subsidiaries, processes and distributes agricultural produce. It also engages in the growing and cultivation of mulberry trees and silkworm cocoons; distribution of fruit business; and processing and distribution of silk and silk fabrics, as well as other by-products. The company was incorporated in 1997 and is headquartered in Beijing, the People's Republic of China.

About Green Thumb Industries

Green Thumb Industries Inc. manufactures, distributes, markets, and sells of cannabis products for medical and adult-use in the United States. It operates through two segments, Retail and Consumer Packaged Goods. The company offers cannabis flower; processed and packaged products, including pre-rolls, concentrates, vapes, capsules, tinctures, edibles, topicals, and other cannabis-related products under the &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles, and RHYTHM brands. It distributes its products primarily to third-party retail customers and sells finished products directly to consumers in its own retail stores, as well as direct-to consumer delivery channel. Green Thumb Industries Inc. was founded in 2014 and is headquartered in Chicago, Illinois.