Aurora Cannabis (NYSE:ACB) and FSD Pharma (NASDAQ:HUGE) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Aurora Cannabis and FSD Pharma, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Aurora Cannabis | 6 | 9 | 0 | 0 | 1.60 |
FSD Pharma | 0 | 0 | 1 | 0 | 3.00 |
Aurora Cannabis currently has a consensus price target of $10.9264, suggesting a potential upside of 38.66%. Given FSD Pharma's stronger consensus rating and higher probable upside, analysts clearly believe FSD Pharma is more favorable than Aurora Cannabis.
Earnings and Valuation
This table compares Aurora Cannabis and FSD Pharma's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Aurora Cannabis | $207.89 million | 7.50 | $-2,468,190,000.00 | ($2.86) | -2.76 |
FSD Pharma | $190,000.00 | 157.33 | $-39,200,000.00 | ($5.55) | -0.28 |
FSD Pharma has lower revenue, but higher earnings than Aurora Cannabis. Aurora Cannabis is trading at a lower price-to-earnings ratio than FSD Pharma, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Aurora Cannabis and FSD Pharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Aurora Cannabis | -1,238.94% | -16.32% | -13.12% |
FSD Pharma | N/A | -111.76% | -92.92% |
Risk & Volatility
Aurora Cannabis has a beta of 3.44, meaning that its share price is 244% more volatile than the S&P 500. Comparatively, FSD Pharma has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Institutional & Insider Ownership
11.9% of Aurora Cannabis shares are held by institutional investors. Comparatively, 0.7% of FSD Pharma shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Aurora Cannabis beats FSD Pharma on 7 of the 13 factors compared between the two stocks.