Critical Analysis: Greenlane (NASDAQ:GNLN) vs. Lamb Weston (NYSE:LW)

Greenlane (NASDAQ:GNLN) and Lamb Weston (NYSE:LW) are both consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Risk and Volatility

Greenlane has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Lamb Weston has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.

Earnings & Valuation

This table compares Greenlane and Lamb Weston”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greenlane	$13.27 million	0.47	-$17.64 million	($255.77)	0.00
Lamb Weston	$6.45 billion	1.04	$357.20 million	$2.78	17.38

Lamb Weston has higher revenue and earnings than Greenlane. Greenlane is trading at a lower price-to-earnings ratio than Lamb Weston, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Greenlane and Lamb Weston, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greenlane	1	0	0	0	1.00
Lamb Weston	1	9	3	0	2.15

Lamb Weston has a consensus price target of $53.00, suggesting a potential upside of 9.71%. Given Lamb Weston’s stronger consensus rating and higher probable upside, analysts clearly believe Lamb Weston is more favorable than Greenlane.

Institutional & Insider Ownership

14.0% of Greenlane shares are owned by institutional investors. Comparatively, 89.6% of Lamb Weston shares are owned by institutional investors. 0.2% of Greenlane shares are owned by company insiders. Comparatively, 0.3% of Lamb Weston shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Greenlane and Lamb Weston’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greenlane	-532.82%	-164.19%	-85.38%
Lamb Weston	6.06%	27.71%	6.52%

Summary

Lamb Weston beats Greenlane on 13 of the 14 factors compared between the two stocks.

About Greenlane

Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.

About Lamb Weston

Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other. It offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels. The company also provides its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' own brands. In addition, it engages in the vegetable and dairy businesses. The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club and specialty retailers, businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. Lamb Weston Holdings, Inc. was incorporated in 1950 and is headquartered in Eagle, Idaho.