Analyzing Verano (OTCMKTS:VRNOF) & Flora Growth (NASDAQ:FLGC)

Verano (OTCMKTS:VRNOF) and Flora Growth (NASDAQ:FLGC) are both small-cap healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares Verano and Flora Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Verano	-41.68%	-9.54%	-4.51%
Flora Growth	-32.03%	-64.02%	-34.46%

Insider & Institutional Ownership

9.0% of Verano shares are held by institutional investors. Comparatively, 36.0% of Flora Growth shares are held by institutional investors. 9.1% of Verano shares are held by company insiders. Comparatively, 2.3% of Flora Growth 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.

Valuation & Earnings

This table compares Verano and Flora Growth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Verano	$878.59 million	0.52	-$341.86 million	($0.98)	-1.29
Flora Growth	$57.61 million	0.07	-$15.91 million	($32.49)	-0.13

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

Volatility and Risk

Verano has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Verano and Flora Growth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Verano	1	0	0	1	2.50
Flora Growth	1	0	0	0	1.00

Summary

Verano beats Flora Growth on 8 of the 13 factors compared between the two stocks.

About Verano

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.

About Flora Growth

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.