Critical Contrast: IM Cannabis (NASDAQ:IMCC) versus AdaptHealth (NASDAQ:AHCO)

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

Risk and Volatility

AdaptHealth has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, IM Cannabis has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.

Institutional and Insider Ownership

82.7% of AdaptHealth shares are owned by institutional investors. Comparatively, 7.7% of IM Cannabis shares are owned by institutional investors. 1.9% of AdaptHealth shares are owned by company insiders. Comparatively, 5.9% of IM Cannabis 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AdaptHealth	-2.42%	2.76%	0.99%
IM Cannabis	-27.65%	-585.96%	-39.96%

Analyst Recommendations

This is a breakdown of current recommendations for AdaptHealth and IM Cannabis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdaptHealth	1	2	5	0	2.50
IM Cannabis	1	0	0	0	1.00

AdaptHealth presently has a consensus target price of $14.29, indicating a potential upside of 34.77%. Given AdaptHealth’s stronger consensus rating and higher probable upside, research analysts plainly believe AdaptHealth is more favorable than IM Cannabis.

Earnings & Valuation

This table compares AdaptHealth and IM Cannabis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AdaptHealth	$3.24 billion	0.44	-$70.79 million	($0.62)	-17.10
IM Cannabis	$39.17 million	0.02	-$8.10 million	($1.75)	-0.09

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

Summary

AdaptHealth beats IM Cannabis on 10 of the 14 factors compared between the two stocks.

About AdaptHealth

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.

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.