Comparing Universal (NYSE:UVV) and Gilla (OTCMKTS:GLLA)

Gilla (OTCMKTS:GLLA) and Universal (NYSE:UVV) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Profitability

This table compares Gilla and Universal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gilla	N/A	N/A	N/A
Universal	0.67%	3.50%	1.74%

Valuation and Earnings

This table compares Gilla and Universal”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gilla	N/A	N/A	N/A	N/A	N/A
Universal	$2.85 billion	0.39	$32.64 million	$0.77	58.21

Universal has higher revenue and earnings than Gilla.

Institutional and Insider Ownership

81.0% of Universal shares are owned by institutional investors. 2.2% of Universal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Gilla has a beta of 13.33, suggesting that its share price is 1,233% more volatile than the S&P 500. Comparatively, Universal has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Gilla and Universal, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gilla	0	0	0	0	0.00
Universal	0	2	0	0	2.00

Summary

Universal beats Gilla on 7 of the 8 factors compared between the two stocks.

About Gilla

Gilla Inc. engages in the manufacture, marketing, and distribution of generic and premium branded e-liquid used in vaporizers, electronic cigarettes, and other vaping hardware and accessories in Europe, Canada, and the United States. The company offers its products under the brand names of Spectrum Concentrates, Coil Glaze, Craft Vapes, Siren, The Drip Factory, Shake It, Surf Sauce, Ohana, Moshi, Crisp, Just Fruit, Vinto Vape, Vapor's Dozen, Enriched Vapor, and Crown E-liquid. Gilla Inc. sells its products through market channels, including vape shops, retail and wholesale distributors, convenience stores, and e-commerce Websites. The company is headquartered in Daytona Beach, Florida.

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products. The company contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes; and dark air-cured tobaccos principally used in the manufacture of cigars, natural wrapped cigars and cigarillos, smokeless, and pipe tobacco products. It also provides value-added services, including blending, chemical, and physical testing of tobacco; service cutting for various manufacturers; manufacturing reconstituted leaf tobacco; just-in-time inventory management services; electronic nicotine delivery systems; and smoke testing services for customers. In addition, the company offers testing services for crop protection agents and tobacco constituents in seed, leaf, and finished products, including e-cigarette liquids and vapors; and analytical services that include chemical compound testing in finished tobacco products and mainstream smoke. Further, it provides a various value-added manufacturing processes to produce specialty vegetable and fruit-based ingredients, as well as botanical extracts and flavorings for human and pet food markets; and recycles waste materials from tobacco production. Universal Corporation was founded in 1886 and is headquartered in Richmond, Virginia.