Head-To-Head Analysis: High Tide (NASDAQ:HITI) & Digital Brands Group (NASDAQ:DBGI)

High Tide (NASDAQ:HITI) and Digital Brands Group (NASDAQ:DBGI) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for High Tide and Digital Brands Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
High Tide	1	0	3	0	2.50
Digital Brands Group	1	0	0	0	1.00

High Tide currently has a consensus target price of $5.62, indicating a potential upside of 112.67%. Given High Tide’s stronger consensus rating and higher possible upside, analysts plainly believe High Tide is more favorable than Digital Brands Group.

Risk and Volatility

High Tide has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Digital Brands Group has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.

Institutional & Insider Ownership

4.5% of High Tide shares are owned by institutional investors. Comparatively, 1.6% of Digital Brands Group shares are owned by institutional investors. 12.4% of High Tide shares are owned by company insiders. Comparatively, 0.0% of Digital Brands Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares High Tide and Digital Brands Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
High Tide	-4.73%	5.13%	1.55%
Digital Brands Group	-768.25%	-561.70%	-90.27%

Earnings and Valuation

This table compares High Tide and Digital Brands Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
High Tide	$425.10 million	0.55	-$36.23 million	($0.31)	-8.53
Digital Brands Group	$7.38 million	0.51	-$28.25 million	($88.79)	-0.05

Digital Brands Group has lower revenue, but higher earnings than High Tide. High Tide is trading at a lower price-to-earnings ratio than Digital Brands Group, indicating that it is currently the more affordable of the two stocks.

Summary

High Tide beats Digital Brands Group on 12 of the 14 factors compared between the two stocks.

About High Tide

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services. In addition, the company manufactures and distributes consumption accessories. Further, it sells its products through online sales via e-commerce platform. The company offers its products under the Daily High Club, DankStop, FABCBD, GC, Nuleaf, Smoke Cartel, and Blessed CBD brands. The company was formerly known as High Tide Ventures Inc. and changed its name to High Tide Inc. in October 2018. High Tide Inc. was founded in 2009 and is headquartered in Calgary, Canada.

About Digital Brands Group

Digital Brands Group, Inc. engages in the provision of apparel products under various brands on direct-to-consumer and wholesale basis. It operates through DSTLD, Bailey, H&J, Stateside, and Sundry segments. The company designs, manufactures, and sells women's apparel, such as tops, sweaters, dresses, jumpsuits, bottoms, sets, jackets, rompers, suiting, sportswear, shirts, jackets, pants, shorts, polos, T-shirts, skirts, athleisure bottoms, denims, and other accessory products, as well as suiting for men. It sells its products under the Bailey 44, Harper & Jones, Stateside, Sunnyside, DSTLD, Sundry, and ACE Studios brand names. The company sells directly to the consumer through its websites, as well as through its wholesale channel in specialty stores, select department stores, and own showrooms. Digital Brands Group, Inc. was formerly known as Denim.LA, Inc. Digital Brands Group, Inc. was incorporated in 2012 and is headquartered in Austin, Texas.