Canopy Growth (NASDAQ:CGC) and Natural Alternatives International (NASDAQ:NAII) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Risk & Volatility
Canopy Growth has a beta of 2.44, suggesting that its stock price is 144% more volatile than the S&P 500. Comparatively, Natural Alternatives International has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.
Valuation and Earnings
This table compares Canopy Growth and Natural Alternatives International's gross 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 |
| Natural Alternatives International | $118.88 million | 0.97 | $-1,640,000.00 | N/A | N/A |
Natural Alternatives International has lower revenue, but higher earnings than Canopy Growth.
Institutional & Insider Ownership
10.2% of Canopy Growth shares are owned by institutional investors. Comparatively, 31.8% of Natural Alternatives International shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 26.4% of Natural Alternatives International shares are owned 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.
Profitability
This table compares Canopy Growth and Natural Alternatives International'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% |
| Natural Alternatives International | 0.40% | 0.71% | 0.43% |
Analyst Ratings
This is a summary of recent ratings and target prices for Canopy Growth and Natural Alternatives International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Canopy Growth | 5 | 10 | 2 | 1 | 1.94 |
| Natural Alternatives International | 0 | 0 | 0 | 0 | N/A |
Canopy Growth currently has a consensus price target of $35.6778, suggesting a potential upside of 28.34%. Given Canopy Growth's higher possible upside, equities research analysts clearly believe Canopy Growth is more favorable than Natural Alternatives International.
Summary
Natural Alternatives International beats Canopy Growth on 7 of the 13 factors compared between the two stocks.
