Financial Review: Lendway (NASDAQ:LDWY) versus TerrAscend (OTCMKTS:TSNDF)

TerrAscend (OTCMKTS:TSNDF) and Lendway (NASDAQ:LDWY) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations for TerrAscend and Lendway, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
Lendway	0	0	0	0	0.00

Earnings and Valuation

This table compares TerrAscend and Lendway”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TerrAscend	$317.33 million	0.60	-$95.54 million	N/A	N/A
Lendway	$31.58 million	0.28	$2.41 million	($1.98)	-2.48

Lendway has lower revenue, but higher earnings than TerrAscend.

Institutional and Insider Ownership

5.8% of TerrAscend shares are held by institutional investors. Comparatively, 6.6% of Lendway shares are held by institutional investors. 31.9% of TerrAscend shares are held by insiders. Comparatively, 13.2% of Lendway shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares TerrAscend and Lendway’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-23.95%	-31.48%	-11.40%
Lendway	N/A	-21.56%	-4.32%

Volatility & Risk

TerrAscend has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Lendway has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Summary

Lendway beats TerrAscend on 6 of the 11 factors compared between the two stocks.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.

About Lendway

Lendway, Inc. operates as a specialty agricultural and finance company focusing on making and managing its agricultural investments in the United States and internationally. It owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or originate and fund new loans domestically. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.