Aurora Cannabis (NYSE:ACB) and Sundial Growers (NASDAQ:SNDL) are both mid-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Analyst Ratings
This is a breakdown of recent recommendations for Aurora Cannabis and Sundial Growers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Aurora Cannabis | 6 | 9 | 0 | 0 | 1.60 |
Sundial Growers | 1 | 2 | 0 | 0 | 1.67 |
Aurora Cannabis currently has a consensus target price of $11.2445, indicating a potential upside of 5.48%. Sundial Growers has a consensus target price of $1.00, indicating a potential downside of 24.81%. Given Aurora Cannabis' higher probable upside, equities analysts clearly believe Aurora Cannabis is more favorable than Sundial Growers.
Profitability
This table compares Aurora Cannabis and Sundial Growers' 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% |
Sundial Growers | -415.89% | -187.67% | -72.67% |
Volatility and Risk
Aurora Cannabis has a beta of 3.44, indicating that its share price is 244% more volatile than the S&P 500. Comparatively, Sundial Growers has a beta of 7.01, indicating that its share price is 601% more volatile than the S&P 500.
Earnings and Valuation
This table compares Aurora Cannabis and Sundial Growers' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Aurora Cannabis | $207.89 million | 10.08 | $-2,468,190,000.00 | ($2.86) | -3.71 |
Sundial Growers | $75.86 million | 27.27 | $-204,570,000.00 | ($3.17) | -0.42 |
Sundial Growers has lower revenue, but higher earnings than Aurora Cannabis. Aurora Cannabis is trading at a lower price-to-earnings ratio than Sundial Growers, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
11.9% of Aurora Cannabis shares are owned by institutional investors. Comparatively, 3.3% of Sundial Growers shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Aurora Cannabis beats Sundial Growers on 7 of the 12 factors compared between the two stocks.