Reviewing TerrAscend (TSNDF) and Its Rivals

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

Insider and Institutional Ownership

5.8% of TerrAscend shares are held by institutional investors. Comparatively, 20.7% of shares of all “Agricultural production – crops” companies are held by institutional investors. 31.9% of TerrAscend shares are held by company insiders. Comparatively, 16.0% of shares of all “Agricultural production – crops” companies are held by company 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.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
TerrAscend	$317.33 million	-$95.54 million	-1.68
TerrAscend Competitors	$1.23 billion	-$827,419.35	6.99

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

Profitability

This table compares TerrAscend and its peers’ 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%

Analyst Recommendations

This is a breakdown of current ratings and price targets for TerrAscend and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
TerrAscend Competitors	319	261	606	34	2.29

As a group, “Agricultural production – crops” companies have a potential upside of 52.50%. Given TerrAscend’s peers higher possible upside, analysts clearly believe TerrAscend has less favorable growth aspects than its peers.

Volatility and Risk

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

Summary

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

About TerrAscend

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.