Rock Creek Pharmaceuticals (OTCMKTS:RCPIQ) and Canopy Growth (NYSE:CGC) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Rock Creek Pharmaceuticals N/A N/A N/A
Canopy Growth -503.14% -26.32% -18.43%

Institutional and Insider Ownership

12.2% of Canopy Growth shares are owned by institutional investors. 0.9% of Rock Creek Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Rock Creek Pharmaceuticals has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 4.46, meaning that its share price is 346% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Rock Creek Pharmaceuticals and Canopy Growth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rock Creek Pharmaceuticals 0 0 0 0 N/A
Canopy Growth 0 1 4 0 2.80

Canopy Growth has a consensus price target of $60.50, indicating a potential upside of 30.02%. Given Canopy Growth’s higher possible upside, analysts clearly believe Canopy Growth is more favorable than Rock Creek Pharmaceuticals.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rock Creek Pharmaceuticals N/A N/A N/A N/A N/A
Canopy Growth $60.79 million 177.70 -$54.88 million ($0.32) -145.41

Rock Creek Pharmaceuticals has higher earnings, but lower revenue than Canopy Growth.

Summary

Canopy Growth beats Rock Creek Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

Rock Creek Pharmaceuticals Company Profile

Rock Creek Pharmaceuticals, Inc., a pharmaceutical development company, focuses on the discovery, development, and commercialization of therapies for chronic inflammatory disease and neurologic disorders. Its lead compound is Anatabine citrate, a small molecule, cholinergic agonist, which exhibits anti-inflammatory pharmacological characteristics, with a mechanism of action distinct from other anti-inflammatory drugs available, such as biologics, steroids, and non-steroidal anti-inflammatories. The company was formerly known as Star Scientific, Inc. and changed its name to Rock Creek Pharmaceuticals, Inc. in June 2014. Rock Creek Pharmaceuticals, Inc. is headquartered in Sarasota, Florida. On September 27, 2016, Rock Creek Pharmaceuticals, Inc., along with its affiliates, filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the District of Delaware.

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.

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