Reviewing Veru (NASDAQ:VERU) and Flora Growth (NASDAQ:FLGC)

Flora Growth (NASDAQ:FLGCGet Free Report) and Veru (NASDAQ:VERUGet Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Flora Growth has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, Veru has a beta of -1.42, suggesting that its share price is 242% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Flora Growth and Veru, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flora Growth 1 0 1 0 2.00
Veru 1 0 3 0 2.50

Flora Growth currently has a consensus target price of $30.00, indicating a potential upside of 222.23%. Veru has a consensus target price of $22.50, indicating a potential upside of 841.42%. Given Veru’s stronger consensus rating and higher probable upside, analysts plainly believe Veru is more favorable than Flora Growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flora Growth $57.61 million 0.17 -$15.91 million ($32.49) -0.29
Veru $16.89 million 2.27 -$22.73 million ($2.20) -1.09

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

Profitability

This table compares Flora Growth and Veru’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flora Growth -32.03% -64.02% -34.46%
Veru N/A -119.51% -74.98%

Insider and Institutional Ownership

36.0% of Flora Growth shares are held by institutional investors. Comparatively, 47.2% of Veru shares are held by institutional investors. 2.3% of Flora Growth shares are held by insiders. Comparatively, 14.2% of Veru shares are held by 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

Veru beats Flora Growth on 8 of the 14 factors compared between the two stocks.

About Flora Growth

(Get Free Report)

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.

About Veru

(Get Free Report)

Veru Inc., a late clinical stage biopharmaceutical company, focuses on developing medicines for treatment of metabolic diseases, oncology, and acute respiratory distress syndrome (ARDS). Its marketed products comprise FC2 female condom for the dual protection against unplanned pregnancy and the transmission of sexually transmitted infections. The company’s development program includes enobosarm, a selective androgen receptor modulator for treatment of augment fat loss and to prevent muscle loss in sarcopenic obese and overweight elderly patients; Enobosarm, a selective androgen receptor modulator for the treatment of AR+ ER+ HER2- metastatic breast cancer; and sabizabulin, a microtubule disruptor for the treatment of hospitalized patients with viral lung infection on oxygen support who are at high risk for viral induced ARDS and death. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.

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