Financial Survey: Otsuka (OTCMKTS:OTSKY) and Ascend Wellness (OTCMKTS:AAWH)

Ascend Wellness (OTCMKTS:AAWH) and Otsuka (OTCMKTS:OTSKY) are both healthcare companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Valuation & Earnings

This table compares Ascend Wellness and Otsuka”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ascend Wellness	$500.58 million	0.20	-$118.19 million	($0.57)	-0.88
Otsuka	$16.51 billion	2.30	$2.43 billion	$2.49	14.20

Otsuka has higher revenue and earnings than Ascend Wellness. Ascend Wellness is trading at a lower price-to-earnings ratio than Otsuka, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

17.3% of Ascend Wellness shares are held by institutional investors. 21.9% of Ascend Wellness shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ascend Wellness and Otsuka’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ascend Wellness	-23.31%	-1,099.51%	-10.85%
Otsuka	15.50%	12.86%	9.59%

Volatility & Risk

Ascend Wellness has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500. Comparatively, Otsuka has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Ascend Wellness and Otsuka, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ascend Wellness	0	1	0	0	2.00
Otsuka	1	2	1	0	2.00

Summary

Otsuka beats Ascend Wellness on 9 of the 12 factors compared between the two stocks.

About Ascend Wellness

Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.

About Otsuka

Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.