Critical Review: TerrAscend (TSNDF) & Its Rivals

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

Analyst Ratings

This is a summary of recent recommendations and price targets for TerrAscend and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
TerrAscend Competitors	314	258	604	34	2.30

As a group, “Agricultural production – crops” companies have a potential upside of 54.91%. Given TerrAscend’s rivals higher probable upside, analysts clearly believe TerrAscend has less favorable growth aspects than its rivals.

Institutional & Insider 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares TerrAscend and its rivals’ 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 & Volatility

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

Valuation & Earnings

This table compares TerrAscend and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TerrAscend	$317.33 million	-$95.54 million	-1.60
TerrAscend Competitors	$1.22 billion	-$827,419.35	6.85

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

Summary

TerrAscend beats its rivals 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.