Comparing Canopy Growth (NASDAQ:CGC) & Talphera (NASDAQ:TLPH)

Canopy Growth (NASDAQ:CGC) and Talphera (NASDAQ:TLPH) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canopy Growth	$251.01 million	1.20	-$190.29 million	($0.45)	-1.49
Talphera	$1,000.00	56,577.54	-$14.29 million	($0.27)	-4.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canopy Growth	-65.33%	-21.91%	-14.34%
Talphera	N/A	-87.28%	-51.36%

Institutional and Insider Ownership

3.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 37.7% of Talphera shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 3.5% of Talphera shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Canopy Growth and Talphera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canopy Growth	1	2	2	0	2.20
Talphera	1	1	2	0	2.25

Talphera has a consensus target price of $3.00, suggesting a potential upside of 175.23%. Given Talphera’s stronger consensus rating and higher probable upside, analysts clearly believe Talphera is more favorable than Canopy Growth.

Risk and Volatility

Canopy Growth has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Talphera has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Summary

Talphera beats Canopy Growth on 8 of the 13 factors compared between the two stocks.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.

About Talphera

Talphera, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of therapies for use in medically supervised settings. Its lead product candidate is Niyad, a lyophilized formulation of nafamostat, which is under an investigational device exemption as an anticoagulant for the extracorporeal circuit. It is also developing LTX-608, an anti-inflammatory and antiviral potential for the treatment of multiple conditions, including disseminated intravascular coagulation (DIC), acute respiratory distress syndrome (ARDS), and acute pancreatitis; Fedsyra, a pre-filled ephedrine syringe; and PFS-02, a pre-filled phenylephrine syringe. The company was formerly known as AcelRx Pharmaceuticals, Inc. and changed its name to Talphera, Inc. in January 2024. The company was incorporated in 2005 and is headquartered in San Mateo, California.