Head to Head Review: High Tide (NASDAQ:HITI) & Chow Tai Fook (OTCMKTS:CJEWY)

Chow Tai Fook (OTCMKTS:CJEWY) and High Tide (NASDAQ:HITI) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Risk and Volatility

Chow Tai Fook has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, High Tide has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares Chow Tai Fook and High Tide”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chow Tai Fook	$12.10 billion	1.31	$1.15 billion	N/A	N/A
High Tide	$425.10 million	0.48	-$36.23 million	($0.31)	-7.42

Chow Tai Fook has higher revenue and earnings than High Tide.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Chow Tai Fook and High Tide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chow Tai Fook	0	0	0	0	0.00
High Tide	1	0	3	1	2.80

High Tide has a consensus target price of $5.62, indicating a potential upside of 144.57%. Given High Tide’s stronger consensus rating and higher probable upside, analysts clearly believe High Tide is more favorable than Chow Tai Fook.

Profitability

This table compares Chow Tai Fook and High Tide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chow Tai Fook	N/A	N/A	N/A
High Tide	-6.62%	3.59%	1.24%

Institutional and Insider Ownership

4.5% of High Tide shares are held by institutional investors. 12.4% of High Tide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

High Tide beats Chow Tai Fook on 9 of the 13 factors compared between the two stocks.

About Chow Tai Fook

Chow Tai Fook Jewellery Group Limited, an investment holding company, manufactures and sells jewelry products in Mainland China, Hong Kong, Macau, Taiwan, Cambodia, Canada, Korea, Japan, Malaysia, the Philippines, Singapore, Thailand, the United States, and Vietnam. The company offers gem-set, platinum and k-gold jewelry, and gold jewelry and products under the CHOW TAI FOOK, HEARTS ON FIRE, ENZO, MONOLOGUE, and SOINLOVE brands. It also distributes watches of various brands. In addition, the company is involved in the trading of diamonds; and the provision of services to franchisees. The company also sells its products through online platforms. The company was founded in 1929 and is headquartered in Central, Hong Kong. Chow Tai Fook Jewellery Group Limited is a subsidiary of Chow Tai Fook Capital Limited.

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.