Akanda (NASDAQ:AKAN) vs. True Drinks (OTCMKTS:TRUU) Critical Analysis

True Drinks (OTCMKTS:TRUU) and Akanda (NASDAQ:AKAN) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

True Drinks has a beta of 10.9, indicating that its share price is 990% more volatile than the S&P 500. Comparatively, Akanda has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares True Drinks and Akanda’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
True Drinks	-255.80%	N/A	-165.86%
Akanda	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for True Drinks and Akanda, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
True Drinks	0	0	0	0	N/A
Akanda	0	0	0	0	N/A

Earnings & Valuation

This table compares True Drinks and Akanda’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
True Drinks	$1.95 million	232.06	-$3.88 million	$0.01	9.10
Akanda	$2.16 million	0.14	-$32.28 million	N/A	N/A

True Drinks has higher earnings, but lower revenue than Akanda.

Insider & Institutional Ownership

1.0% of Akanda shares are held by institutional investors. 18.2% of True Drinks shares are held by insiders. Comparatively, 20.4% of Akanda shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Akanda beats True Drinks on 5 of the 8 factors compared between the two stocks.

About True Drinks

True Drinks Holdings, Inc. markets and distributes nutritional supplement drinks. The company sells Bazi All Natural Energy, a liquid nutritional supplement drink through drinkbazi.com. It also formulates products containing CBD; and produces and distributes vapor products in approximately 90 countries. The company was formerly known as True Drinks, Inc. and changed its name to True Drinks Holdings, Inc. in October 2012. True Drinks Holdings, Inc. was founded in 2008 and is headquartered in Irvine, California.

About Akanda

Akanda Corp., through its subsidiaries, engages in the cultivation, manufacture, and distribution of cannabis products to patients worldwide. It offers medicinal-grade cannabis and cannabis based medical and wellness products. The company was incorporated in 2021 and is headquartered in New Romney, the United Kingdom.