Comparing Generation Hemp (OTCMKTS:GENH) & First Advantage (NYSE:FA)

First Advantage (NYSE:FA) and Generation Hemp (OTCMKTS:GENH) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

94.9% of First Advantage shares are owned by institutional investors. 5.3% of First Advantage shares are owned by company insiders. Comparatively, 60.9% of Generation Hemp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares First Advantage and Generation Hemp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Advantage	$1.05 billion	2.85	$37.29 million	($0.91)	-18.85
Generation Hemp	$680,000.00	36.83	-$9.82 million	N/A	N/A

First Advantage has higher revenue and earnings than Generation Hemp.

Profitability

This table compares First Advantage and Generation Hemp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Advantage	0.65%	13.16%	7.33%
Generation Hemp	-674.14%	-15,656.36%	-195.12%

Volatility and Risk

First Advantage has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Generation Hemp has a beta of -0.38, meaning that its stock price is 138% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for First Advantage and Generation Hemp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Advantage	0	5	3	0	2.38
Generation Hemp	0	0	0	0	0.00

First Advantage presently has a consensus price target of $66.00, indicating a potential upside of 284.73%. Given First Advantage’s stronger consensus rating and higher probable upside, research analysts plainly believe First Advantage is more favorable than Generation Hemp.

Summary

First Advantage beats Generation Hemp on 10 of the 12 factors compared between the two stocks.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.

About Generation Hemp

Evergreen Sustainable Enterprises, Inc. operates as a hemp company. It engages in leases warehouse space to hemp seed growers. The company was founded on July 28, 2008 and is headquartered in Dallas, TX.