Critical Analysis: MariMed (MRMD) and The Competition

MariMed (OTC:MRMD) is one of 55 publicly-traded companies in the “Medicinals & botanicals” industry, but how does it weigh in compared to its competitors? We will compare MariMed to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Valuation and Earnings

This table compares MariMed and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MariMed	$148.60 million	-$16.03 million	-2.42
MariMed Competitors	$310.11 million	-$49.81 million	-5.22

MariMed’s competitors have higher revenue, but lower earnings than MariMed. MariMed is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

0.2% of MariMed shares are held by institutional investors. Comparatively, 15.8% of shares of all “Medicinals & botanicals” companies are held by institutional investors. 19.0% of MariMed shares are held by company insiders. Comparatively, 21.5% of shares of all “Medicinals & botanicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares MariMed and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MariMed	-8.95%	1.58%	0.53%
MariMed Competitors	-38.94%	-24.68%	-6.33%

Analyst Recommendations

This is a summary of current recommendations for MariMed and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MariMed	0	0	0	1	4.00
MariMed Competitors	291	567	1085	86	2.48

As a group, “Medicinals & botanicals” companies have a potential upside of 83.10%. Given MariMed’s competitors higher possible upside, analysts clearly believe MariMed has less favorable growth aspects than its competitors.

Volatility and Risk

MariMed has a beta of 2.99, indicating that its share price is 199% more volatile than the S&P 500. Comparatively, MariMed’s competitors have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Summary

MariMed beats its competitors on 8 of the 13 factors compared.

About MariMed

MariMed Inc. engages in cultivation, production, and dispensing of medicinal and recreational cannabis in the United States and internationally. The company sells flowers and concentrates under the Nature’s Heritage brand; and soft and chewy baked goods and a hot chocolate mix under Bubby’s Baked brand; and drink mix under Vibations brand. It also offers chewable cannabis-infused mint tablet under the brand Kalm Fusion; and flower, vapes, and edibles under InHouse brand. In addition, the company provides supplement, nutrient-infused fruit chews under Betty’s Eddies brand and ice creams under Emack & Bolio’s brand. The company licenses its brands. MariMed Inc. was incorporated in 2011 and is based in Norwood, Massachusetts.