Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) are both medical companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Canopy Growth and Tilray, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canopy Growth 0 1 4 0 2.80
Tilray 0 2 3 0 2.60

Canopy Growth currently has a consensus target price of $60.50, suggesting a potential upside of 24.79%. Tilray has a consensus target price of $124.25, suggesting a potential upside of 64.90%. Given Tilray’s higher probable upside, analysts clearly believe Tilray is more favorable than Canopy Growth.

Institutional & Insider Ownership

12.0% of Canopy Growth shares are held by institutional investors. Comparatively, 6.1% of Tilray shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Canopy Growth and Tilray’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canopy Growth $60.79 million 185.15 -$54.88 million ($0.32) -151.50
Tilray $20.53 million 341.92 -$7.80 million N/A N/A

Tilray has lower revenue, but higher earnings than Canopy Growth.

Profitability

This table compares Canopy Growth and Tilray’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canopy Growth -503.14% -26.32% -18.43%
Tilray -121.22% -60.74% -32.31%

Summary

Canopy Growth beats Tilray on 6 of the 10 factors compared between the two stocks.

Canopy Growth Company Profile

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.

Tilray Company Profile

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Nanaimo, Canada.

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