Contrasting Phibro Animal Health (NASDAQ:PAHC) and TerrAscend (OTCMKTS:TSNDF)

TerrAscend (OTCMKTS:TSNDF) and Phibro Animal Health (NASDAQ:PAHC) are both medical companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

TerrAscend has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500. Comparatively, Phibro Animal Health has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Institutional and Insider Ownership

5.8% of TerrAscend shares are owned by institutional investors. Comparatively, 99.3% of Phibro Animal Health shares are owned by institutional investors. 32.2% of TerrAscend shares are owned by company insiders. Comparatively, 50.1% of Phibro Animal Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares TerrAscend and Phibro Animal Health”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TerrAscend	$260.56 million	0.68	-$81.33 million	($0.41)	-1.39
Phibro Animal Health	$1.30 billion	1.68	$48.26 million	$2.25	23.95

Phibro Animal Health has higher revenue and earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than Phibro Animal Health, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TerrAscend and Phibro Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-47.22%	-22.65%	-4.74%
Phibro Animal Health	6.29%	38.28%	8.37%

Analyst Recommendations

This is a breakdown of current ratings for TerrAscend and Phibro Animal Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	2	3.33
Phibro Animal Health	1	2	2	1	2.50

Phibro Animal Health has a consensus target price of $37.50, indicating a potential downside of 30.40%. Given Phibro Animal Health’s higher probable upside, analysts plainly believe Phibro Animal Health is more favorable than TerrAscend.

Summary

Phibro Animal Health beats TerrAscend on 12 of the 15 factors compared between the two stocks.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.

About Phibro Animal Health

Phibro Animal Health Corporation operates as an animal health and mineral nutrition company in the United States, Israel, Brazil, Ireland, and internationally. It operates through three segments: Animal Health, Mineral Nutrition, and Performance Products. The company develops, manufactures, and markets various products for food and companion animals including poultry, swine, beef and dairy cattle, aquaculture, and dogs. It also offers animal health products, such as antibacterials, anticoccidials, nutritional specialty, and vaccines and vaccine adjuvants for animal’s health and performance, food safety, and animal welfare; and engages in development, manufacturing, and marketing of microbial and bioproducts for various applications serving animal health and nutrition, environmental, industrial, and agricultural customers. In addition, the company develops, manufactures, and markets conventionally licensed and autogenous vaccine products, as well as adjuvants for animal vaccine manufacturers. Further, it provides formulations and concentrations of trace minerals, such as zinc, manganese, copper, iron, and other compounds to fortify the daily feed requirements of their livestock’s diets and maintain optimal balance of trace elements in animals. Additionally, the company offers specialty ingredients for personal care, industrial chemical, and chemical catalyst industries. It sells its animal health and mineral nutrition products through local sales offices to integrated poultry, swine, and cattle producers, as well as through commercial animal feed manufacturers, wholesalers, and distributors. The company was formerly known as Philipp Brothers Chemicals, Inc. and changed its name to Phibro Animal Health Corporation in July 2003. Phibro Animal Health Corporation was founded in 1946 and is headquartered in Teaneck, New Jersey.