Canopy Growth (NASDAQ:CGC – Get Free Report) and Cresco Labs (OTCMKTS:CRLBF – Get Free Report) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.
Earnings & Valuation
This table compares Canopy Growth and Cresco Labs”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Canopy Growth | $225.65 million | 1.05 | -$429.86 million | ($4.04) | -0.32 |
Cresco Labs | $724.34 million | 0.33 | -$74.44 million | ($0.24) | -2.00 |
Profitability
This table compares Canopy Growth and Cresco Labs’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Canopy Growth | -195.76% | -88.54% | -40.78% |
Cresco Labs | -11.86% | -21.77% | -6.00% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Canopy Growth and Cresco Labs, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Canopy Growth | 2 | 0 | 0 | 0 | 1.00 |
Cresco Labs | 0 | 2 | 0 | 2 | 3.00 |
Canopy Growth presently has a consensus target price of $2.00, suggesting a potential upside of 55.04%. Given Canopy Growth’s higher probable upside, research analysts plainly believe Canopy Growth is more favorable than Cresco Labs.
Volatility & Risk
Canopy Growth has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Cresco Labs has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
Institutional and Insider Ownership
3.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 0.1% of Cresco Labs shares are owned by institutional investors. 1.3% of Canopy Growth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Cresco Labs beats Canopy Growth on 9 of the 14 factors compared between the two stocks.
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.
About Cresco Labs
Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections and fruit-forward gummies under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.
Receive News & Ratings for Canopy Growth Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Canopy Growth and related companies with MarketBeat.com's FREE daily email newsletter.