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

Insider & Institutional Ownership

22.5% of Signal Genetics shares are owned by institutional investors. 44.4% of Signal Genetics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Signal Genetics and Cannabis Science’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Signal Genetics $3.34 million 53.37 -$12.67 million ($8.93) -0.89
Cannabis Science N/A N/A N/A N/A N/A

Cannabis Science has higher revenue, but lower earnings than Signal Genetics.

Analyst Ratings

This is a breakdown of current ratings and price targets for Signal Genetics and Cannabis Science, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signal Genetics 0 0 3 0 3.00
Cannabis Science 0 0 0 0 N/A

Signal Genetics currently has a consensus target price of $23.00, indicating a potential upside of 187.86%. Given Signal Genetics’ higher possible upside, research analysts plainly believe Signal Genetics is more favorable than Cannabis Science.

Volatility and Risk

Signal Genetics has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Cannabis Science has a beta of -4.04, indicating that its share price is 504% less volatile than the S&P 500.

Profitability

This table compares Signal Genetics and Cannabis Science’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Signal Genetics -720.38% -80.31% -64.59%
Cannabis Science -953,196.00% N/A -380.46%

Summary

Signal Genetics beats Cannabis Science on 8 of the 9 factors compared between the two stocks.

About Signal Genetics

Signal Genetics, Inc. is a commercial stage, molecular genetic diagnostic company. The Company is focused on providing diagnostic services that help physicians to make decisions concerning the care of cancer patients. The Company’s diagnostic service is the Myeloma Prognostic Risk Signature (MyPRS) test. The MyPRS test is a microarray-based gene expression profile (GEP), assay that measures the expression level of specific genes and groups of genes that are designed to predict an individual’s long-term clinical outcome/prognosis, giving a basis for personalized treatment options. The Company’s MyPRS test provides a whole-genomic expression profile of a patient’s multiple myeloma (MM). The Company offers MyPRS test in its laboratory located in Little Rock, Arkansas. The Company is licensed to sell its test in all 50 states.

About Cannabis Science

Cannabis Science, Inc. is engaged in medical marijuana research and development. The Company works on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce and commercialize phytocannabinoid-based pharmaceutical products. The Company is involved in the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance. The Company focuses on the development of governmentally approved pharmaceuticals, including CS-TATI1, CS-S/BCC-1 and neurological therapy under study or development. The Company’s subsidiaries include Cannabis Science BV and Cannabis Science International Holding BV.

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