Daiwa Securities Group (OTCMKTS:DSEEY) & Cannabis Wheaton Income (OTCMKTS:CBWTF) Financial Analysis

Profitability

This table compares Cannabis Wheaton Income and Daiwa Securities Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannabis Wheaton Income	20.99%	20.55%	12.42%
Daiwa Securities Group	11.91%	7.36%	0.39%

Earnings & Valuation

This table compares Cannabis Wheaton Income and Daiwa Securities Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannabis Wheaton Income	$108.41 million	1.48	$29.96 million	$0.02	5.62
Daiwa Securities Group	$9.75 billion	1.43	$1.16 billion	$0.83	11.85

Daiwa Securities Group has higher revenue and earnings than Cannabis Wheaton Income. Cannabis Wheaton Income is trading at a lower price-to-earnings ratio than Daiwa Securities Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cannabis Wheaton Income has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Daiwa Securities Group has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Summary

Cannabis Wheaton Income beats Daiwa Securities Group on 5 of the 9 factors compared between the two stocks.

About Cannabis Wheaton Income

Auxly Cannabis Group Inc. operates as a consumer packaged goods company in the cannabis products market in Canada. It focuses on developing, manufacturing, and distributing cannabis products for wellness and recreational consumers. The company offers cannabis products under various forms, including vape catridges, infused pre-rolls, pre-rolled, vape pens, milled and dried flower, concentrates, chocolates, soft chews, oil drops, capsules, and topicals under the KOLAB PROJECT, Dosecann, BACK FORTY, Foray, and Parcel brand names. It sells its products through supply arrangements with provincial control boards and distributors, medical cannabis sales channels, and retailers, as well as to authorized wholesalers. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. The company was incorporated in 1987 and is headquartered in Toronto, Canada.

About Daiwa Securities Group

Daiwa Securities Group Inc., together with its subsidiaries, primarily operates as a securities broker-dealer in Japan and internationally. The company operates through four segments: Retail, Wholesale, Asset Management, and Investment. The Retail segment offers products and services related to asset management, including equities, bonds, investment trusts, wrap account services, insurance, banking services, inheritance-related services, etc. for individual investors and unlisted companies. The Wholesale segment offers sales and trading services of equities and bonds, as well as of foreign exchange and derivative products primarily for institutional investors and corporations; and investment banking services, such as underwriting of securities, M&A advisory, etc. The Asset Management segment structures and manages investment trusts primarily for individual investors and financial institutions; provides investment advisory services; and manages assets. The Investment segment invests in monetary claims, loans, private equities, and real estate properties, as well as energy, infrastructure, and resource sectors. The company also offers research and consulting, and information services, as well as engages in the office work activities. In addition, it is involved in the securities-related, investment advisory and agency, and investment management businesses, as well as lending and borrowing of real estate properties. The company was formerly known as Daiwa Securities Co. Ltd. and changed its name to Daiwa Securities Group Inc. in 1999. Daiwa Securities Group Inc. was founded in 1902 and is headquartered in Tokyo, Japan.