Cronos Group (NASDAQ:CRON) and Tilray (NASDAQ:TLRY) are both mid-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Profitability
This table compares Cronos Group and Tilray's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Cronos Group | 266.31% | -1.61% | -1.41% |
Tilray | -242.60% | -92.70% | -20.70% |
Valuation and Earnings
This table compares Cronos Group and Tilray's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Cronos Group | $25.64 million | 137.51 | $1.17 billion | $0.67 | 14.79 |
Tilray | $166.98 million | 13.74 | $-321,170,000.00 | ($1.69) | -10.17 |
Cronos Group has higher earnings, but lower revenue than Tilray. Tilray is trading at a lower price-to-earnings ratio than Cronos Group, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
11.8% of Cronos Group shares are held by institutional investors. Comparatively, 12.6% of Tilray shares are held by institutional investors. 7.9% of Cronos Group shares are held by company insiders. Comparatively, 16.8% of Tilray shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations for Cronos Group and Tilray, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Cronos Group | 2 | 4 | 2 | 0 | 2.00 |
Tilray | 2 | 10 | 1 | 0 | 1.92 |
Cronos Group presently has a consensus target price of $8.1875, suggesting a potential downside of 17.38%. Tilray has a consensus target price of $12.2720, suggesting a potential downside of 28.59%. Given Cronos Group's stronger consensus rating and higher probable upside, equities research analysts clearly believe Cronos Group is more favorable than Tilray.
Risk and Volatility
Cronos Group has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500. Comparatively, Tilray has a beta of 3.12, suggesting that its share price is 212% more volatile than the S&P 500.
Summary
Cronos Group beats Tilray on 10 of the 14 factors compared between the two stocks.