Head-To-Head Comparison: SNDL (NASDAQ:SNDL) and Neogen (NASDAQ:NEOG)

Neogen (NASDAQ:NEOG) and SNDL (NASDAQ:SNDL) are both medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares Neogen and SNDL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neogen	-69.93%	2.35%	1.46%
SNDL	-1.19%	-1.02%	-0.85%

Risk and Volatility

Neogen has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500. Comparatively, SNDL has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

96.7% of Neogen shares are owned by institutional investors. 0.5% of Neogen shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Neogen and SNDL”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neogen	$870.56 million	2.34	-$1.09 billion	($2.80)	-3.34
SNDL	$937.39 million	0.38	-$11.29 million	($0.03)	-45.83

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Neogen and SNDL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neogen	1	3	2	0	2.17
SNDL	1	1	1	0	2.00

Neogen presently has a consensus price target of $10.67, suggesting a potential upside of 14.20%. SNDL has a consensus price target of $5.00, suggesting a potential upside of 263.64%. Given SNDL’s higher possible upside, analysts plainly believe SNDL is more favorable than Neogen.

Summary

Neogen beats SNDL on 9 of the 14 factors compared between the two stocks.

About Neogen

Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods. The segment offers its products primarily to milling and grain, meat and poultry, prepared foods and ingredients, fruits and vegetables, seafood, dairy, beverage, water, healthcare, traditional culture media markets, food service, and dietary supplements markets. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent control products, cleaners, disinfectants, insect control products, and genomics testing services marketed through veterinarians, retailers, livestock producers, and animal health product distributors, for the animal safety market. The segment offers its products for companion animal veterinarians; livestock producers, veterinarians, and breed associations; retailers; breeding and genetics companies; diagnostic labs and universities; distributors; and other manufacturers and government agencies. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.

About SNDL

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.