Analyzing Quanterix (NASDAQ:QTRX) and IM Cannabis (NASDAQ:IMCC)

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

Insider and Institutional Ownership

7.7% of IM Cannabis shares are owned by institutional investors. Comparatively, 86.5% of Quanterix shares are owned by institutional investors. 5.9% of IM Cannabis shares are owned by insiders. Comparatively, 6.8% of Quanterix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

IM Cannabis has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500. Comparatively, Quanterix has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for IM Cannabis and Quanterix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	1	0	0	0	1.00
Quanterix	1	2	0	0	1.67

Quanterix has a consensus target price of $8.00, suggesting a potential upside of 102.02%. Given Quanterix’s stronger consensus rating and higher probable upside, analysts clearly believe Quanterix is more favorable than IM Cannabis.

Profitability

This table compares IM Cannabis and Quanterix’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%
Quanterix	-77.14%	-23.96%	-17.86%

Earnings and Valuation

This table compares IM Cannabis and Quanterix”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	0.09	-$7.72 million	($0.78)	-0.76
Quanterix	$138.90 million	1.34	-$107.15 million	($2.52)	-1.57

IM Cannabis has higher earnings, but lower revenue than Quanterix. Quanterix 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

Quanterix beats IM Cannabis on 7 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 Quanterix

Quanterix Corporation, a life sciences company, engages in development and marketing of digital immunoassay platforms that advances precision health for life sciences research and diagnostics in North America, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers HD-X instrument, a protein detection platform; and SR-X instrument that enables researchers to apply Simoa detection in an expanded range of applications. It also provides SP-X instrument that is based on Simoa planar array technology for the measurement of multiplex chemiluminescent immunoassays. The company's products include assays include all components required to run enzyme-based immunoassay, such as beads, capture and detector reagents, and enzyme reagents and substrate; and replacement parts, reagents, and antibodies. In addition, it offers contract research services, including sample testing, homebrew assay development, custom assay development, lucent diagnostic, and LDT testing services. The company primarily operates in the areas of neurology, oncology, cardiology, infectious diseases, and inflammation. It sells its products for the life science research sector primarily to laboratories associated with academic and governmental research institutions, as well as pharmaceutical, biotechnology, and contract research companies through a direct field sale, support organizations, and distributors or sales agents. The company was formerly known as Digital Genomics, Inc. and changed its name to Quanterix Corporation in August 2007. Quanterix Corporation was incorporated in 2007 and is headquartered in Billerica, Massachusetts.