Analyzing Trulieve Cannabis (NYSE:TRLV) and RYTHM (NASDAQ:RYM)

RYTHM (NASDAQ:RYM) and Trulieve Cannabis (NYSE:TRLV) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

6.0% of RYTHM shares are owned by institutional investors. 3.5% of RYTHM shares are owned by insiders. Comparatively, 3.8% of Trulieve Cannabis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RYTHM	N/A	N/A	N/A
Trulieve Cannabis	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RYTHM	1	0	0	0	1.00
Trulieve Cannabis	1	1	1	0	2.00

Trulieve Cannabis has a consensus target price of $15.00, indicating a potential upside of 40.78%. Given Trulieve Cannabis’ stronger consensus rating and higher possible upside, analysts clearly believe Trulieve Cannabis is more favorable than RYTHM.

Valuation and Earnings

This table compares RYTHM and Trulieve Cannabis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RYTHM	$51.01 million	0.70	-$22.94 million	($10.53)	-1.55
Trulieve Cannabis	N/A	N/A	N/A	$0.11	96.86

Trulieve Cannabis has lower revenue, but higher earnings than RYTHM. RYTHM is trading at a lower price-to-earnings ratio than Trulieve Cannabis, indicating that it is currently the more affordable of the two stocks.

Summary

Trulieve Cannabis beats RYTHM on 5 of the 7 factors compared between the two stocks.

About RYTHM

Agrify Corporation develops precision hardware and software cultivation and extraction solutions for the cannabis and hemp industry in the United States. The company offers vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and pesticide-free surface protection products. It also provides associated services comprising consulting, engineering, and construction. The company was formerly known as Agrinamics, Inc. and changed its name to Agrify Corporation in September 2019. Agrify Corporation was incorporated in 2016 and is headquartered in Billerica, Massachusetts.

About Trulieve Cannabis

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.