Comparing TerrAscend (OTCMKTS:TSNDF) & IM Cannabis (NASDAQ:IMCC)

IM Cannabis (NASDAQ:IMCC) and TerrAscend (OTCMKTS:TSNDF) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

7.7% of IM Cannabis shares are held by institutional investors. Comparatively, 5.8% of TerrAscend shares are held by institutional investors. 32.2% of TerrAscend shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

IM Cannabis has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Earnings and Valuation

This table compares IM Cannabis and TerrAscend”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IM Cannabis	$39.44 million	0.16	-$7.72 million	($0.78)	-1.40
TerrAscend	$306.68 million	0.59	-$80.23 million	($0.41)	-1.44

IM Cannabis has higher earnings, but lower revenue than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than IM Cannabis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares IM Cannabis and TerrAscend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IM Cannabis	-9.47%	-134.35%	-11.66%
TerrAscend	-42.72%	-18.32%	-4.36%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for IM Cannabis and TerrAscend, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	1	0	0	0	1.00
TerrAscend	0	1	0	2	3.33

Summary

TerrAscend beats IM Cannabis on 8 of the 13 factors compared between the two stocks.

About IM Cannabis

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel and Germany. It offers cannabis flowers and strain-specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, minis, and full spectrum extracts offerings under the WAGNERS and BLKMKT brands. The company serves medical patients. IM Cannabis Corp. is headquartered in Tel Aviv, Israel.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.