Analyzing Aurora Cannabis (NYSE:ACB) & Cronos Group (NYSE:CRON)
Aurora Cannabis (NYSE:ACB) and Cronos Group (NASDAQ:CRON) are both mid-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.
Valuation & Earnings
This table compares Aurora Cannabis and Cronos Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aurora Cannabis||$43.49 million||166.96||$56.66 million||$0.12||59.67|
|Cronos Group||$12.12 million||414.35||-$14.64 million||($0.08)||-186.75|
This table compares Aurora Cannabis and Cronos Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Aurora Cannabis has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, Cronos Group has a beta of 3.49, meaning that its share price is 249% more volatile than the S&P 500.
This is a summary of current ratings for Aurora Cannabis and Cronos Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aurora Cannabis presently has a consensus target price of $9.86, suggesting a potential upside of 37.66%. Cronos Group has a consensus target price of $22.49, suggesting a potential upside of 50.51%. Given Cronos Group’s higher probable upside, analysts clearly believe Cronos Group is more favorable than Aurora Cannabis.
Insider and Institutional Ownership
9.0% of Aurora Cannabis shares are held by institutional investors. Comparatively, 8.3% of Cronos Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Aurora Cannabis beats Cronos Group on 7 of the 13 factors compared between the two stocks.
Aurora Cannabis Company Profile
Aurora Cannabis Inc. produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution. The company's products consist of dried cannabis and cannabis oil; CanniMed vegan capsules; and hemp products, as well as sells vaporizers, consumable vaporizer accessories, and herb mills for using herbal cannabis products. It also operates CanvasRX, a network of cannabis counseling and outreach centers; and provides cannabis analytical product testing services. As of February 26, 2019, the company had operations in 24 countries across five continents. Aurora Cannabis Inc. has collaboration agreements with PharmaChoice, Pharmasave, and Shoppers Drug Mart for the distribution, sale, and marketing of medical cannabis products through their respective networks of pharmacies. The company has a strategic agreements with Hempco Food and Fiber Inc.; CTT Pharmaceuticals Inc.; Choom Holdings Inc.; Capcium Inc.; The Green Organic Dutchman Holdings Ltd.; Société des Alcools du Québec; Alcanna; Radient Technologies; Micron Waste; Wagner Dimas; Evio; and Cann Group Limited. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.
Cronos Group Company Profile
Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm. The firm seeks to invest in companies either licensed, or actively seeking a license, to produce medical marijuana pursuant to Canada's Marihuana for Medical Purposes Regulations MMPR. The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment, but does not need control. Cronos Group Inc. was incorporated in January, 2013 and is based in Toronto, Canada with an additional office in Toronto, Canada.
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