Critical Review: High Tide (NASDAQ:HITI) & Futureworld (OTCMKTS:FWDG)

Futureworld (OTCMKTS:FWDG) and High Tide (NASDAQ:HITI) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Volatility and Risk

Futureworld has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, High Tide has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares Futureworld and High Tide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Futureworld	N/A	N/A	N/A
High Tide	-1.66%	-6.50%	-3.84%

Valuation and Earnings

This table compares Futureworld and High Tide”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Futureworld	N/A	N/A	N/A	N/A	N/A
High Tide	$381.22 million	0.68	-$3.19 million	($0.08)	-37.36

Futureworld has higher earnings, but lower revenue than High Tide.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Futureworld and High Tide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Futureworld	0	0	0	0	0.00
High Tide	1	0	2	1	2.75

High Tide has a consensus target price of $6.13, indicating a potential upside of 104.92%. Given High Tide’s stronger consensus rating and higher probable upside, analysts clearly believe High Tide is more favorable than Futureworld.

Institutional and Insider Ownership

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

Summary

High Tide beats Futureworld on 8 of the 11 factors compared between the two stocks.

About Futureworld

FutureWorld Corp., together with its subsidiaries, focuses on the identification, acquisition, development, and commercialization of hemp/cannabis products, services, and technologies worldwide. The company provides smart sensor technology, communication network, surveillance security, data analysis for smart cultivation, and consultation for the industrial hemp and legal medicinal marijuana. It offers personal and professional tetrahydrocannabinoil and Cannabidiol test kits; pharmaceutical grade CBD oil solutions; URVape vaporizer pens, which are oil vaporizers for the e-cigarette, cannabis, and herbal vaping industry; CaNNaLyTiX, a dashboard controller system that allows various computer systems to be integrated throughout a cultivator's infrastructures; CaNNaTRAK, the barcode and RFID tracking systems for keeping seed to sale tracking of hemp/cannabis; and SPIDer (secure perimeter intrusion detection network), a system to meet the needs of theft and malicious attacks. The company also provides SmartSense, which offers wireless security and smart sensor mesh network for precision agriculture, irrigation systems, and greenhouses for the hemp industry; SmartNergy that offers tools to analyze various aspects of a cultivator's energy usage; and CaNNaBoX machine, which operates with the swipe of a card to verify identity, age, and prescription information of a medical marijuana patient before releasing measured packages of marijuana. Its target customers include consumers via Internet sales, direct-to-consumer health and wellness stores, collectives, cooperatives, affiliate sales, and master distributors. The company was formerly known as FutureWorld Energy, Inc. and changed its name to FutureWorld Corp. in June 2014. FutureWorld Corp. was founded in 2002 and is based in Saint Petersburg, Florida.

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.