Analyzing Raia Drogasil (OTCMKTS:RADLY) and High Tide (NASDAQ:HITI)

Raia Drogasil (OTCMKTS:RADLY) 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 valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Raia Drogasil	N/A	N/A	N/A
High Tide	-6.14%	2.06%	1.25%

Earnings & Valuation

This table compares Raia Drogasil and High Tide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raia Drogasil	N/A	N/A	N/A	N/A	N/A
High Tide	$511.12 million	0.35	-$29.14 million	($0.32)	-6.94

Raia Drogasil has higher earnings, but lower revenue than High Tide.

Analyst Recommendations

This is a summary of current recommendations and price targets for Raia Drogasil and High Tide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raia Drogasil	0	0	0	0	N/A
High Tide	0	0	1	1	3.50

High Tide has a consensus price target of $4.50, indicating a potential upside of 103.62%. Given High Tide’s higher probable upside, analysts plainly believe High Tide is more favorable than Raia Drogasil.

Insider and Institutional Ownership

4.5% of High Tide shares are owned by institutional investors. 12.4% of High Tide shares are owned 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

High Tide beats Raia Drogasil on 8 of the 9 factors compared between the two stocks.

About Raia Drogasil

Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. It also markets its goods through telesales and call centers in the states of São Paulo, Tocantins, and Pernambuco. The company was founded in 1905 and is headquartered in São Paulo, Brazil.

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.