Critical Review: Trulieve Cannabis (TRLV) and Its Peers

Trulieve Cannabis (NYSE:TRLV) is one of 899 public companies in the “Pharmaceuticals” industry, but how does it contrast to its peers? We will compare Trulieve Cannabis to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, risk, dividends, profitability and earnings.

Profitability

This table compares Trulieve Cannabis and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trulieve Cannabis	-41.55%	-4.24%	-1.72%
Trulieve Cannabis Competitors	-2,378.12%	-221.74%	-16.00%

Insider and Institutional Ownership

32.5% of shares of all “Pharmaceuticals” companies are owned by institutional investors. 3.8% of Trulieve Cannabis shares are owned by company insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Trulieve Cannabis and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trulieve Cannabis	1	1	1	0	2.00
Trulieve Cannabis Competitors	7687	13771	25585	1016	2.41

Trulieve Cannabis currently has a consensus target price of $15.00, indicating a potential upside of 40.12%. As a group, “Pharmaceuticals” companies have a potential upside of 38.09%. Given Trulieve Cannabis’ higher probable upside, equities analysts clearly believe Trulieve Cannabis is more favorable than its peers.

Earnings and Valuation

This table compares Trulieve Cannabis and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Trulieve Cannabis	$1.14 billion	-$116.38 million	97.32
Trulieve Cannabis Competitors	$17.11 billion	$3.18 billion	550.30

Trulieve Cannabis’ peers have higher revenue and earnings than Trulieve Cannabis. Trulieve Cannabis is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Trulieve Cannabis peers beat Trulieve Cannabis on 8 of the 12 factors compared.

Trulieve Cannabis Company Profile

Trulieve Cannabis Corp., together with its subsidiaries, operates as a medical cannabis company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia, as well as directly to patients through home delivery. It produces approximately 550 stock keeping units, including flower, edibles, vaporizer cartridges, concentrates, topicals, capsules, tinctures, dissolvable powders, and nasal sprays. As of May 5, 2021, the company operated through 87 dispensaries in the United States. The company is headquartered in Quincy, Florida.