Analyzing 22nd Century Group (NASDAQ:XXII) and Charlie’s (OTCMKTS:CHUC)

Valuation & Earnings

This table compares Charlie’s and 22nd Century Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Charlie’s	$8.49 million	10.57	-$4.16 million	$0.01	33.64
22nd Century Group	$24.38 million	0.27	-$15.16 million	($2,986.49)	0.00

Charlie’s has higher earnings, but lower revenue than 22nd Century Group. 22nd Century Group is trading at a lower price-to-earnings ratio than Charlie’s, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

7.8% of Charlie’s shares are held by institutional investors. Comparatively, 18.1% of 22nd Century Group shares are held by institutional investors. 20.9% of Charlie’s shares are held by company insiders. Comparatively, 0.0% of 22nd Century Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Charlie’s has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, 22nd Century Group has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.

Profitability

This table compares Charlie’s and 22nd Century Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Charlie’s	19.36%	-174.49%	36.91%
22nd Century Group	-80.22%	-344.13%	-62.82%

Summary

Charlie’s beats 22nd Century Group on 8 of the 11 factors compared between the two stocks.

About Charlie’s

Charlie's Holdings, Inc., together with its subsidiaries, formulates, markets, and distributes non-combustible nicotine-related, alternative alkaloid vapor, and hemp-derived vapor and edible products. It sells its products through distributors, specialty retailers, and third-party online resellers in the United States, the United Kingdom, Italy, Spain, New Zealand, Australia, and Canada. Charlie's Holdings, Inc. was founded in 2014 and is headquartered in Costa Mesa, California.

About 22nd Century Group

22nd Century Group, Inc., a tobacco products company, engages in the sale and distribution of its own proprietary new reduced nicotine tobacco products. The company offers reduced nicotine content tobacco plants and very low nicotine combustible cigarette products. It also provides contract manufacturing services for conventional combustible tobacco products for third-party brands. The company was founded in 1998 and is headquartered in Mocksville, North Carolina.