Canopy Growth (NASDAQ:CGC) and Cyanotech (NASDAQ:CYAN) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Earnings and Valuation
This table compares Canopy Growth and Cyanotech's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Canopy Growth | $297.34 million | 35.73 | $-993,370,000.00 | $1.32 | 21.06 |
Cyanotech | $31.90 million | 0.60 | $390,000.00 | N/A | N/A |
Cyanotech has lower revenue, but higher earnings than Canopy Growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Canopy Growth and Cyanotech, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Canopy Growth | 5 | 10 | 2 | 1 | 1.94 |
Cyanotech | 0 | 0 | 0 | 0 | N/A |
Canopy Growth presently has a consensus price target of $35.6778, suggesting a potential upside of 28.34%. Given Canopy Growth's higher probable upside, equities research analysts clearly believe Canopy Growth is more favorable than Cyanotech.
Volatility and Risk
Canopy Growth has a beta of 2.44, indicating that its share price is 144% more volatile than the S&P 500. Comparatively, Cyanotech has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.
Profitability
This table compares Canopy Growth and Cyanotech's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Canopy Growth | -312.84% | -13.11% | -9.66% |
Cyanotech | 1.82% | 3.67% | 1.80% |
Insider and Institutional Ownership
10.2% of Canopy Growth shares are owned by institutional investors. Comparatively, 11.3% of Cyanotech shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 26.2% of Cyanotech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Cyanotech beats Canopy Growth on 7 of the 13 factors compared between the two stocks.