Financial Survey: Hero Technologies (OTCMKTS:HENC) and Canopy Growth (NASDAQ:CGC)

Hero Technologies (OTCMKTS:HENC) and Canopy Growth (NASDAQ:CGC) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

Hero Technologies has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hero Technologies and Canopy Growth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hero Technologies	N/A	N/A	-$540,000.00	N/A	N/A
Canopy Growth	$269.00 million	1.01	-$487.23 million	($4.04)	-0.37

Hero Technologies has higher earnings, but lower revenue than Canopy Growth.

Profitability

This table compares Hero Technologies and Canopy Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hero Technologies	N/A	N/A	N/A
Canopy Growth	-156.98%	-56.52%	-24.18%

Insider and Institutional Ownership

3.3% of Canopy Growth shares are held by institutional investors. 0.2% of Hero Technologies shares are held by company insiders. Comparatively, 1.3% of Canopy Growth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hero Technologies and Canopy Growth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hero Technologies	0	0	0	0	0.00
Canopy Growth	2	0	0	0	1.00

Canopy Growth has a consensus target price of $2.00, suggesting a potential upside of 35.14%. Given Canopy Growth’s stronger consensus rating and higher possible upside, analysts plainly believe Canopy Growth is more favorable than Hero Technologies.

About Hero Technologies

Hero Technologies Inc. operates as an early-stage cannabis company. It focuses on the provision of BlackBox, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and the cultivation of large flowering plants and create increased harvest efficiencies. The company also intends to offer cannabis genetic engineering farmland for medical and recreational cannabis cultivation, production, distribution, packaging, and retail operations, as well as for dispensaries. The company is based in Dover, Delaware.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.