Head-To-Head Analysis: High Tide (OTCMKTS:HITID) vs. Valvoline (NYSE:VVV)

Valvoline (NYSE:VVV) and High Tide (OTCMKTS:HITID) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Valvoline and High Tide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valvoline	0	5	12	0	2.71
High Tide	0	0	0	0	0.00

Valvoline currently has a consensus price target of $42.88, indicating a potential upside of 33.38%. Given Valvoline’s stronger consensus rating and higher possible upside, research analysts clearly believe Valvoline is more favorable than High Tide.

Valuation and Earnings

This table compares Valvoline 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
Valvoline	$1.96 billion	2.09	$210.70 million	$0.80	40.19
High Tide	N/A	N/A	N/A	N/A	N/A

Valvoline has higher revenue and earnings than High Tide.

Insider and Institutional Ownership

96.1% of Valvoline shares are owned by institutional investors. 0.7% of Valvoline shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Valvoline	5.17%	65.12%	7.11%
High Tide	N/A	N/A	N/A

Summary

Valvoline beats High Tide on 9 of the 9 factors compared between the two stocks.

About Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.

About High Tide

High Tide Inc. operates as a vertically-integrated company in the cannabis market in Canada, the United States, and internationally. It engages in the design, manufacture, and distribution of smoking accessories and cannabis lifestyle products. It is also involved in the wholesale and retailing of cannabis products, as well as operates and franchises licensed retail cannabis stores. In addition, the company provides data analytics services, as well as operates Grasscity.com and CBDcity.com platforms. As of April 26, 2021, it operated 85 retail locations in Canada. 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.