TerrAscend (TSNDF) vs. Its Rivals Critical Analysis

TerrAscend (OTCMKTS:TSNDF) is one of 43 public companies in the “Agricultural production – crops” industry, but how does it compare to its peers? We will compare TerrAscend to similar companies based on the strength of its institutional ownership, profitability, valuation, dividends, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current ratings for TerrAscend and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
TerrAscend Competitors	313	258	604	34	2.30

As a group, “Agricultural production – crops” companies have a potential upside of 56.85%. Given TerrAscend’s peers higher possible upside, analysts plainly believe TerrAscend has less favorable growth aspects than its peers.

Profitability

This table compares TerrAscend and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-23.95%	-31.48%	-11.40%
TerrAscend Competitors	-98.15%	-2,439.03%	-14.56%

Risk and Volatility

TerrAscend has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, TerrAscend’s peers have a beta of -19.60, suggesting that their average share price is 2,060% less volatile than the S&P 500.

Insider and Institutional Ownership

5.8% of TerrAscend shares are owned by institutional investors. Comparatively, 20.7% of shares of all “Agricultural production – crops” companies are owned by institutional investors. 31.9% of TerrAscend shares are owned by insiders. Comparatively, 16.0% of shares of all “Agricultural production – crops” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares TerrAscend and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TerrAscend	$317.33 million	-$95.54 million	-1.55
TerrAscend Competitors	$1.22 billion	-$827,419.35	6.78

TerrAscend’s peers have higher revenue and earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

TerrAscend beats its peers on 7 of the 13 factors compared.

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.