Canopy Growth (NASDAQ:CGC) and Cronos Group (NASDAQ:CRON) are both mid-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Risk & Volatility
Canopy Growth has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, Cronos Group has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.
Earnings and Valuation
This table compares Canopy Growth and Cronos Group's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Canopy Growth | $414.03 million | 13.97 | $-1,322,470,000.00 | ($2.16) | -6.81 |
| Cronos Group | $46.72 million | 47.74 | $-73,140,000.00 | ($0.38) | -15.72 |
Cronos Group has lower revenue, but higher earnings than Canopy Growth. Cronos Group is trading at a lower price-to-earnings ratio than Canopy Growth, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Canopy Growth and Cronos Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Canopy Growth | -200.71% | -17.31% | -10.94% |
| Cronos Group | -258.59% | -9.48% | -8.36% |
Institutional & Insider Ownership
14.2% of Canopy Growth shares are held by institutional investors. Comparatively, 13.9% of Cronos Group shares are held by institutional investors. 0.1% of Canopy Growth shares are held by company insiders. Comparatively, 5.5% of Cronos Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Canopy Growth and Cronos Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Canopy Growth | 1 | 10 | 3 | 0 | 2.14 |
| Cronos Group | 3 | 2 | 1 | 0 | 1.67 |
Canopy Growth presently has a consensus target price of $31.3444, indicating a potential upside of 113.08%. Cronos Group has a consensus target price of $8.70, indicating a potential upside of 45.61%. Given Canopy Growth's stronger consensus rating and higher possible upside, equities analysts clearly believe Canopy Growth is more favorable than Cronos Group.
Summary
Canopy Growth beats Cronos Group on 8 of the 14 factors compared between the two stocks.
