Contrasting Turning Point Brands (NYSE:TPB) & 22nd Century Group (NASDAQ:XXII)

Turning Point Brands (NYSE:TPB) and 22nd Century Group (NASDAQ:XXII) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Turning Point Brands	10.34%	25.32%	9.52%
22nd Century Group	-80.22%	-344.13%	-62.82%

Volatility and Risk

Turning Point Brands has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, 22nd Century Group has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Institutional & Insider Ownership

96.1% of Turning Point Brands shares are held by institutional investors. Comparatively, 18.1% of 22nd Century Group shares are held by institutional investors. 6.6% of Turning Point Brands 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 will outperform the market over the long term.

Valuation and Earnings

This table compares Turning Point Brands 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
Turning Point Brands	$360.66 million	4.87	$39.81 million	$2.39	40.74
22nd Century Group	$24.38 million	0.05	-$15.16 million	($2,986.49)	0.00

Turning Point Brands has higher revenue and earnings than 22nd Century Group. 22nd Century Group is trading at a lower price-to-earnings ratio than Turning Point Brands, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Turning Point Brands and 22nd Century Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Turning Point Brands	0	1	5	2	3.13
22nd Century Group	0	0	0	0	0.00

Turning Point Brands presently has a consensus target price of $78.8333, suggesting a potential downside of 19.05%. Given Turning Point Brands’ stronger consensus rating and higher probable upside, research analysts clearly believe Turning Point Brands is more favorable than 22nd Century Group.

Summary

Turning Point Brands beats 22nd Century Group on 14 of the 15 factors compared between the two stocks.

About Turning Point Brands

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker’s Products, and Creative Distribution Solutions. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand. The Stoker’s Products segment manufactures and markets moist snuff tobacco and loose-leaf chewing tobacco products under the Stoker’s, Beech-Nut, Durango, Trophy, and Wind River brands. Its Creative Distribution Solutions segment market and distribute other products without tobacco and/or nicotine to individual consumers through VaporFi B2C online platform, as well as non-traditional retail through VaporBeast. In addition, it markets and distributes cannabis accessories and tobacco products. The company sells its products to wholesale distributors and retail merchants in the independent and chain convenience stores, tobacco outlets, food stores, mass merchandising, drug store, and non-traditional retail channels. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. Turning Point Brands, Inc. was founded in 1988 and is headquartered in Louisville, Kentucky.

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.