Reviewing Haleon (NYSE:HLN) and Canopy Growth (NASDAQ:CGC)

Canopy Growth (NASDAQ:CGC) and Haleon (NYSE:HLN) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.

Risk & Volatility

Canopy Growth has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Haleon has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Canopy Growth and Haleon, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canopy Growth	2	3	0	0	1.60
Haleon	1	3	4	1	2.56

Haleon has a consensus price target of $12.33, indicating a potential upside of 17.83%. Given Haleon’s stronger consensus rating and higher possible upside, analysts clearly believe Haleon is more favorable than Canopy Growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canopy Growth	$278.61 million	1.44	-$429.86 million	($1.96)	-0.56
Haleon	$14.35 billion	3.24	$1.84 billion	$0.39	26.82

Haleon has higher revenue and earnings than Canopy Growth. Canopy Growth is trading at a lower price-to-earnings ratio than Haleon, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canopy Growth	-113.21%	-61.97%	-35.22%
Haleon	N/A	N/A	N/A

Insider & Institutional Ownership

3.3% of Canopy Growth shares are held by institutional investors. Comparatively, 6.7% of Haleon shares are held by institutional investors. 0.2% of Canopy Growth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Haleon beats Canopy Growth on 13 of the 15 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 Haleon

Haleon plc, together with its subsidiaries, engages in the research, development, manufacture, and sale of various consumer healthcare products in North America, Europe, the Middle East, Africa, Latin America, and the Asia Pacific. The company provides oral health products, such as toothpastes, mouth washes, and denture care products under the Sensodyne, Polident, Parodontax, Biotene brands; and vitamins, minerals, and supplements under Centrum, Emergen-C, Caltrate brands. It also offers various over-the-counter products comprising nasal drops, and cold, flu, and allergy relief products under Otrivine, Theraflu, and Flonase brands for respiratory issues; anti-inflammatory and pain relief products under Voltaren, Panadol, and Advil brands; and antacids and antihistamine products under TUMS, ENO, and Fenistil brands for digestive health and other issues. The company was formerly known as DRVW 2022 plc and changed its name to Haleon plc in February 2022. Haleon plc was founded in 1715 and is headquartered in Weybridge, the United Kingdom.