Critical Review: Cresco Labs (CRLBF) and Its Competitors

Cresco Labs (OTCMKTS:CRLBFGet Rating) is one of 50 publicly-traded companies in the “Medicinals & botanicals” industry, but how does it compare to its peers? We will compare Cresco Labs to similar companies based on the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Cresco Labs and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cresco Labs $821.68 million -$319.60 million -3.18
Cresco Labs Competitors $256.05 million -$63.83 million -7.22

Cresco Labs has higher revenue, but lower earnings than its peers. Cresco Labs is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

0.2% of Cresco Labs shares are held by institutional investors. Comparatively, 17.9% of shares of all “Medicinals & botanicals” companies are held by institutional investors. 28.1% of shares of all “Medicinals & botanicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Cresco Labs and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cresco Labs -37.03% -1.46% -0.69%
Cresco Labs Competitors 1,001.90% -148.32% 145.12%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cresco Labs and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cresco Labs 0 0 6 0 3.00
Cresco Labs Competitors 288 693 691 32 2.27

Cresco Labs presently has a consensus target price of $15.58, indicating a potential upside of 312.26%. As a group, “Medicinals & botanicals” companies have a potential upside of 104.32%. Given Cresco Labs’ stronger consensus rating and higher possible upside, research analysts clearly believe Cresco Labs is more favorable than its peers.

About Cresco Labs (Get Rating)

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand, as well as cannabis products under the Reserve brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections, fruit-forward gummies, hard sweets, and taffy under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. As of January 27, 2022, it owned and operated 48 dispensaries. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.

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