Head-To-Head Survey: High Tide (NASDAQ:HITI) versus Lithia Motors (NYSE:LAD)

Lithia Motors (NYSE:LAD) and High Tide (NASDAQ:HITI) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Insider and Institutional Ownership

4.5% of High Tide shares are owned by institutional investors. 1.1% of Lithia Motors shares are owned by insiders. Comparatively, 12.4% of High Tide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Lithia Motors and High Tide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lithia Motors	1.88%	12.16%	3.14%
High Tide	-6.62%	3.59%	1.24%

Volatility and Risk

Lithia Motors has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, High Tide has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500.

Earnings and Valuation

This table compares Lithia Motors and High Tide”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithia Motors	$37.63 billion	0.22	$819.60 million	$30.15	12.51
High Tide	$425.10 million	0.49	-$36.23 million	($0.31)	-7.58

Lithia Motors has higher revenue and earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Lithia Motors, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Lithia Motors and High Tide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithia Motors	0	5	6	0	2.55
High Tide	1	0	3	1	2.80

Lithia Motors currently has a consensus price target of $430.22, indicating a potential upside of 14.02%. High Tide has a consensus price target of $5.62, indicating a potential upside of 139.36%. Given High Tide’s stronger consensus rating and higher probable upside, analysts clearly believe High Tide is more favorable than Lithia Motors.

Summary

Lithia Motors beats High Tide on 9 of the 15 factors compared between the two stocks.

About Lithia Motors

Lithia Motors, Inc. operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles. The company sells its products and services through the Driveway and Greencars brand names through a network of locations, e-commerce platforms, and captive finance solutions. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.