Critical Analysis: Greenlane (NASDAQ:GNLN) versus GLG Life Tech (OTCMKTS:GLGLF)

GLG Life Tech (OTCMKTS:GLGLF) and Greenlane (NASDAQ:GNLN) are both small-cap consumer staples companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares GLG Life Tech and Greenlane’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GLG Life Tech	105.86%	N/A	-91.56%
Greenlane	-532.82%	-164.19%	-85.38%

Volatility & Risk

GLG Life Tech has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500. Comparatively, Greenlane has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Institutional & Insider Ownership

14.0% of Greenlane shares are owned by institutional investors. 0.2% of Greenlane shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for GLG Life Tech and Greenlane, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GLG Life Tech	0	0	0	0	0.00
Greenlane	1	0	0	0	1.00

Given GLG Life Tech’s higher possible upside, research analysts plainly believe GLG Life Tech is more favorable than Greenlane.

Valuation and Earnings

This table compares GLG Life Tech and Greenlane”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GLG Life Tech	$10.62 million	0.00	$48.29 million	$0.23	N/A
Greenlane	$13.27 million	0.91	-$17.64 million	($255.77)	-0.01

GLG Life Tech has higher earnings, but lower revenue than Greenlane. Greenlane is trading at a lower price-to-earnings ratio than GLG Life Tech, indicating that it is currently the more affordable of the two stocks.

Summary

GLG Life Tech beats Greenlane on 6 of the 11 factors compared between the two stocks.

About GLG Life Tech

GLG Life Tech Corporation researches for, develops, grows, refines, and produces natural sweeteners extracted from the stevia plant and monk fruit in Canada and internationally. It also offers P-Pro Plus, a pea protein product; REB M GOLD, a bioconverted Rebaudioside M and Rebaudioside D. sweetener; and natural ingredients. It serves in the food and beverage industry. The company was formerly known as GLG Life Tech Limited and changed its name to GLG Life Tech Corporation in March 2007. GLG Life Tech Corporation was incorporated in 1998 and is headquartered in Richmond, Canada.

About Greenlane

Greenlane Holdings, Inc. develops and distributes cannabis accessories, vape solutions, and lifestyle products in the United States, Canada, and Europe. It operates in two segments, Consumer Goods and Industrial Goods. The company provides consumption accessories, vaporizers, pipes, rolling papers, grinders, and apparel lines, as well as bubblers, rigs, other smoking and vaporization related accessories, and merchandise. It offers its products under the Groove, Eyce, DaVinci, Higher Standards, Pollen Gear, Marley Natural, and Keith Haring brands. The company also operates e-commerce websites, such as Vapor.com, Vaposhop.com, DaVinciVaporizer.com, PuffItUp.com, HigherStandards.com, EyceMolds.com, and MarleyNaturalShop.com. It serves customers through smoke shops, cannabis dispensaries, and specialty retailers. The company was founded in 2005 and is headquartered in Boca Raton, Florida.