Local Bounti (NYSE:LOCL – Get Free Report) and Green Thumb Industries (OTC:GTBIF – Get Free Report) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Insider and Institutional Ownership
28.0% of Local Bounti shares are owned by institutional investors. Comparatively, 0.1% of Green Thumb Industries shares are owned by institutional investors. 31.5% of Local Bounti shares are owned by insiders. Comparatively, 9.4% of Green Thumb Industries 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.
Valuation & Earnings
This table compares Local Bounti and Green Thumb Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Local Bounti | $41.36 million | 0.53 | -$124.01 million | ($15.54) | -0.13 |
| Green Thumb Industries | $1.05 billion | 1.02 | $36.27 million | $0.21 | 24.19 |
Green Thumb Industries has higher revenue and earnings than Local Bounti. Local Bounti 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.
Risk & Volatility
Local Bounti has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, Green Thumb Industries has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Local Bounti and Green Thumb Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Local Bounti | 0 | 0 | 0 | 0 | 0.00 |
| Green Thumb Industries | 0 | 0 | 0 | 3 | 4.00 |
Profitability
This table compares Local Bounti and Green Thumb Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Local Bounti | -427.08% | -1,095.76% | -35.86% |
| Green Thumb Industries | 5.68% | 3.65% | 2.52% |
Summary
Green Thumb Industries beats Local Bounti on 10 of the 13 factors compared between the two stocks.
About Local Bounti
Local Bounti Corporation grows and packs fresh greens in the United States. It produces lettuce, herbs, and loose-leaf lettuce. The company sells its products to food retailers and food service distributors. Local Bounti Corporation was founded in 2018 and is headquartered in Hamilton, Montana.
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.
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