Critical Contrast: TerrAscend (TSNDF) and Its Peers

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

Profitability

This table compares TerrAscend and its competitors’ 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, meaning that its stock price is 64% more volatile than the S&P 500. Comparatively, TerrAscend’s competitors have a beta of -19.60, meaning that their average stock price is 2,060% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for TerrAscend and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
TerrAscend Competitors	316	259	605	34	2.29

As a group, “Agricultural production – crops” companies have a potential upside of 54.03%. Given TerrAscend’s competitors higher possible upside, analysts clearly believe TerrAscend has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares TerrAscend and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TerrAscend	$317.33 million	-$95.54 million	-1.57
TerrAscend Competitors	$1.23 billion	-$827,419.35	6.88

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

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 company insiders. Comparatively, 16.0% of shares of all “Agricultural production – crops” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

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

TerrAscend Company Profile

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.