Financial Comparison: Lendway (NASDAQ:LDWY) & Green Thumb Industries (OTCMKTS:GTBIF)

Lendway (NASDAQ:LDWY) and Green Thumb Industries (OTCMKTS:GTBIF) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

Lendway has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Green Thumb Industries has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lendway	N/A	-21.56%	-4.32%
Green Thumb Industries	5.38%	3.39%	2.32%

Valuation & Earnings

This table compares Lendway and Green Thumb Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendway	$31.58 million	0.28	$2.41 million	($1.98)	-2.48
Green Thumb Industries	$1.05 billion	1.59	$36.27 million	$0.27	29.37

Green Thumb Industries has higher revenue and earnings than Lendway. Lendway is trading at a lower price-to-earnings ratio than Green Thumb Industries, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

6.6% of Lendway shares are held by institutional investors. Comparatively, 0.1% of Green Thumb Industries shares are held by institutional investors. 13.2% of Lendway shares are held by insiders. Comparatively, 10.4% of Green Thumb Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Lendway and Green Thumb Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendway	0	0	0	0	0.00
Green Thumb Industries	0	0	2	3	3.60

Green Thumb Industries has a consensus target price of $16.50, indicating a potential upside of 108.07%. Given Green Thumb Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Green Thumb Industries is more favorable than Lendway.

Summary

Green Thumb Industries beats Lendway on 12 of the 15 factors compared between the two stocks.

About Lendway

Lendway, Inc. operates as a specialty agricultural and finance company focusing on making and managing its agricultural investments in the United States and internationally. It owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or originate and fund new loans domestically. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.

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.