Comparing Cronos Group (NASDAQ:CRON) & Hypermarcas (OTCMKTS:HYPMY)

Cronos Group (NASDAQ:CRON) and Hypermarcas (OTCMKTS:HYPMY) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares Cronos Group and Hypermarcas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cronos Group	$146.59 million	8.20	-$9.45 million	$0.20	16.30
Hypermarcas	$1.38 billion	2.30	$213.10 million	$0.50	9.00

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

Profitability

This table compares Cronos Group and Hypermarcas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cronos Group	39.08%	4.85%	4.62%
Hypermarcas	19.77%	14.63%	7.13%

Volatility & Risk

Cronos Group has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Hypermarcas has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Cronos Group and Hypermarcas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cronos Group	0	2	3	0	2.60
Hypermarcas	0	1	0	1	3.00

Cronos Group currently has a consensus target price of $2.30, indicating a potential downside of 29.45%. Given Cronos Group’s higher possible upside, analysts plainly believe Cronos Group is more favorable than Hypermarcas.

Insider & Institutional Ownership

8.7% of Cronos Group shares are held by institutional investors. 7.8% of Cronos Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Cronos Group beats Hypermarcas on 8 of the 15 factors compared between the two stocks.

About Cronos Group

Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.

About Hypermarcas

Hypera S.A. operates as a pharmaceutical company in Brazil. It offers prescription products under the Adacne, Addera, apri, AmpliumG, please, Celestamine, Celestone, Celestone Soluspan, Cizax, deciprax, Derive C Micro, Micro Drift, Dermotil Fusid, Digedrat, diprogent, Diprosalic, Diprosone, diprospan, Emprol XR, Flow, Garasone, Halobex, Lipanon, moon, Lydian, macrodantin, Max Sulid, milgamma, Mioflex A, nesina, Novotram, oximax, peridal, Peridal Suspension, PredSim, Pressaliv, Quadriderm, Rizi, Rizi M, softalm, tacroz, tinodin, umma, and velunid brands. The company also provides sun protection and moisturizing skin care products under the Mantecorp Skincare brands; similar products under the Doralgina, Dropy D, balance, Flavonid, histamin, NeoFresh, neolefrin, Neochemistry Vitamins, Neosorum, and Torsilax brand names; and consumer health products under the Apracur, Benegrip, Buscopan, Coristina D Pro, Engov, Epocler, Estomazil, and Neosaldina brands, as well as similar and generic drugs under the Neo Química brand. In addition, it offers nutritional and vitamin supplement products under the Tamarine, Vitasay, Biotônico Fontoura, and Zero-Cal brands; and generic medicines under the Hydroxyzine, Sodium Diclofenac, Dipyron, Ibuprofen, Losartan Potassium, Mal Dexchlorpheniramine, Naproxene, Paracetamol, Simethicon, Loratadine, Omeprazole, Tadalaphyl, and Desogestrel brand names. The company was formerly known as Hypermarcas S.A. and changed its name to Hypera S.A. in February 2018. Hypera S.A. was founded in 2001 and is headquartered in São Paulo, Brazil.