Vector Group (NYSE:VGR) and mCig (OTCMKTS:MCIG) are both small-cap consumer staples companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Vector Group pays an annual dividend of $1.60 per share and has a dividend yield of 13.6%. mCig does not pay a dividend. Vector Group pays out 280.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Vector Group has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, mCig has a beta of -2.32, suggesting that its share price is 332% less volatile than the S&P 500.
Valuation & Earnings
This table compares Vector Group and mCig’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vector Group||$1.81 billion||0.92||$84.57 million||$0.57||20.61|
|mCig||$7.08 million||14.35||-$1.07 million||N/A||N/A|
Vector Group has higher revenue and earnings than mCig.
Insider & Institutional Ownership
49.1% of Vector Group shares are held by institutional investors. Comparatively, 0.0% of mCig shares are held by institutional investors. 12.5% of Vector Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Vector Group and mCig’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Vector Group and mCig, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vector Group presently has a consensus target price of $27.00, suggesting a potential upside of 129.79%. Given Vector Group’s higher probable upside, analysts clearly believe Vector Group is more favorable than mCig.
Vector Group beats mCig on 10 of the 12 factors compared between the two stocks.
Vector Group Company Profile
Vector Group Ltd., through its subsidiaries, manufactures and sells cigarettes in the United States. It operates through Tobacco, E-Cigarettes, and Real Estate segments. The company produces cigarettes in 109 combinations under the PYRAMID, EAGLE 20's, GRAND PRIX, LIGGETT SELECT, and EVE brand names, as well as USA and various partner brands, and private label brands. It also sells electronic cigarettes. In addition, the company provides residential brokerage, relocation, and real estate sales and marketing services, as well as title and settlement services to real estate companies and financial institutions; manages cooperatives, condominiums, and apartments; acquires, owns, and invests in real estate properties; and engages in land development activities. Further, it operates elliman.com, which serves as a destination where consumers can search properties and access market information, as well as offers building and neighborhood guides, and other interactive content; and AskElliman.com that facilitates communication with consumers, providing them with access to information from real estate to mortgage financing, to specific neighborhoods. Vector Group Ltd. markets and sells its cigarettes to wholesalers and distributors of tobacco, as well as grocery, drug, and convenience store chains. The company was formerly known as Brooke Group Ltd. Vector Group Ltd. was founded in 1911 and is based in Miami, Florida.
mCig Company Profile
mCig, Inc. operates in the cannabis industry in the United States and internationally. The company operates through four segments: Cultivation, Manufacturing and Distribution (CMD); Retail Sales; Media and Technologies; and Agriculture. The CMD segment designs, develops, engineers, and constructs modular buildings and green houses that assist cannabis and herbal growers in the market, as well as offers consulting services in the cannabis industry. The Retail Sales segment engages in the retail, distribution, and online sale of electronic cigarettes, CBD products, and vaporizers, as well as supplies for cannabis distributors, growers, and dispensaries. The Media and Technologies segment operates 420cloud, a social platform for advertising services in the cannabis and cryptocurrency markets; and provides software solutions, Website development, and other social media services. The Agriculture segment is involved in planting and growing industrial hemp. mCig, Inc. offers financial and consulting services to cannabis and cryptocurrency markets. The company was formerly known as Lifetech Industries, Inc. and changed its name to mCig, Inc. in August 2013. mCig, Inc. was founded in 2010 and is headquartered in Las Jacksonville, Florida.
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