Analyzing NXT-ID (NXTD) and General Cannabis (CANN)

NXT-ID (NASDAQ:NXTD) and General Cannabis (OTCMKTS:CANN) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Earnings & Valuation

This table compares NXT-ID and General Cannabis’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NXT-ID $23.31 million 1.15 -$8.26 million N/A N/A
General Cannabis $3.52 million 27.47 -$8.22 million N/A N/A

General Cannabis has lower revenue, but higher earnings than NXT-ID.

Profitability

This table compares NXT-ID and General Cannabis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NXT-ID -31.23% -31.14% -12.56%
General Cannabis -394.43% -243.86% -163.45%

Insider & Institutional Ownership

4.8% of NXT-ID shares are held by institutional investors. 13.3% of NXT-ID shares are held by insiders. Comparatively, 18.0% of General Cannabis shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for NXT-ID and General Cannabis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NXT-ID 0 0 2 0 3.00
General Cannabis 0 0 0 0 N/A

NXT-ID presently has a consensus price target of $4.50, indicating a potential upside of 320.56%. Given NXT-ID’s higher possible upside, analysts clearly believe NXT-ID is more favorable than General Cannabis.

Risk & Volatility

NXT-ID has a beta of -3.75, meaning that its stock price is 475% less volatile than the S&P 500. Comparatively, General Cannabis has a beta of -0.78, meaning that its stock price is 178% less volatile than the S&P 500.

Summary

NXT-ID beats General Cannabis on 7 of the 11 factors compared between the two stocks.

About NXT-ID

Nxt-ID, Inc., a security technology company, engages in the development of products and solutions for security, healthcare, financial technology, and Internet of Things (IoT) markets. It offers non-monitored and monitored personal emergency response systems (PERS), including landline and cell-based options; the Fit Pay Trusted Payment Manager Platform (TPMP) that provides IoT and wearable devices with contactless payment capabilities and full digital wallet functionality; World Ventures Flye SmartCard, a smartcard customized for WorldVentures, the travel company; and Fit Pay General Purpose Reloadable Mastercard, which offers prepaid capabilities on wearable devices connected to the TPMP. The company also offers Flip, a new contactless payment device that will enable cryptocurrency holders to use the value of their currency to make purchases at millions of retail locations; Wi-Mag that allows users to make payments at most POS terminals; and SmartPay with the ability to make payments by dynamic magnetic stripe or through interacting with a terminal through EMV, NFC, or barcode functionality on various devices. The company sells its products through dealers and distributors. It has a strategic alliance agreement with QubeChain LLC for the development and marketing of blockchain-based technology solutions in the healthcare, payments, and other strategic markets. Under the Agreement, the companies will jointly offer technology products and solutions from both companies to their respective customer bases and collaborate to pursue new market opportunities. Nxt-ID, Inc. was founded in 2011 and is based in Melbourne, Florida.

About General Cannabis

General Cannabis Corp provides products and services to the regulated cannabis industry in the United States. The company operates through four segments: Security and Cash Transportation Services (Security), Marketing Consulting and Apparel (Marketing), Operations Consulting and Products (Operations), and Finance and Real Estate (Finance). The Security segment advanced security services, including on-site professional and cash transport to licensed cannabis cultivators and retail shops, as well as security services to non-cannabis customers in the hospitality business. The Marketing segment provides designing, branding, and marketing strategy consulting services to the cannabis industry; and designs and sources client-specific apparel and products. This segment offers t-shirts, hats, hoodies, and accessories through an online shop, as well as cannabis retailers, and specialty t-shirt and gift shops. The Operations segment provides consulting services to the cannabis industry that comprise obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations. The Finance segment engages in the acquiring and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners. This segment also offers shared office space, networking, and event services; direct term loans and revolving lines of credit; and customized finance, capital formation, and banking services. The company was formerly known as Advanced Cannabis Solutions, Inc. and changed its name to General Cannabis Corp in June 2015. General Cannabis Corp was incorporated in 2013 and is headquartered in Denver, Colorado.

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