RYTHM (NASDAQ:RYM – Get Free Report) and Trulieve Cannabis (NYSE:TRLV – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Insider and Institutional Ownership
6.0% of RYTHM shares are held by institutional investors. 3.5% of RYTHM shares are held by company insiders. Comparatively, 3.8% of Trulieve Cannabis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares RYTHM and Trulieve Cannabis”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RYTHM | $17.28 million | 2.04 | -$33.26 million | ($10.53) | -1.53 |
| Trulieve Cannabis | $1.18 billion | 1.67 | -$116.38 million | $0.11 | 93.18 |
RYTHM has higher earnings, but lower revenue than Trulieve Cannabis. RYTHM is trading at a lower price-to-earnings ratio than Trulieve Cannabis, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for RYTHM and Trulieve Cannabis, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RYTHM | 1 | 0 | 0 | 0 | 1.00 |
| Trulieve Cannabis | 1 | 1 | 1 | 0 | 2.00 |
Trulieve Cannabis has a consensus price target of $15.00, indicating a potential upside of 46.34%. Given Trulieve Cannabis’ stronger consensus rating and higher possible upside, analysts plainly believe Trulieve Cannabis is more favorable than RYTHM.
Profitability
This table compares RYTHM and Trulieve Cannabis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RYTHM | -6.20% | -12.57% | -2.60% |
| Trulieve Cannabis | -41.55% | -4.24% | -1.72% |
Summary
Trulieve Cannabis beats RYTHM on 9 of the 13 factors compared between the two stocks.
About RYTHM
Agrify Corporation develops precision hardware and software cultivation and extraction solutions for the cannabis and hemp industry in the United States. The company offers vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and pesticide-free surface protection products. It also provides associated services comprising consulting, engineering, and construction. The company was formerly known as Agrinamics, Inc. and changed its name to Agrify Corporation in September 2019. Agrify Corporation was incorporated in 2016 and is headquartered in Billerica, Massachusetts.
About Trulieve Cannabis
Trulieve Cannabis Corp., together with its subsidiaries, operates as a medical cannabis company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia, as well as directly to patients through home delivery. It produces approximately 550 stock keeping units, including flower, edibles, vaporizer cartridges, concentrates, topicals, capsules, tinctures, dissolvable powders, and nasal sprays. As of May 5, 2021, the company operated through 87 dispensaries in the United States. The company is headquartered in Quincy, Florida.
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