Head to Head Analysis: Prestige Consumer Healthcare (NYSE:PBH) and Cresco Labs (OTCMKTS:CRLBF)

Cresco Labs (OTCMKTS:CRLBF) and Prestige Consumer Healthcare (NYSE:PBH) are both medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cresco Labs and Prestige Consumer Healthcare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cresco Labs	0	2	0	0	2.00
Prestige Consumer Healthcare	0	4	4	0	2.50

Prestige Consumer Healthcare has a consensus price target of $85.33, indicating a potential upside of 43.34%. Given Prestige Consumer Healthcare’s stronger consensus rating and higher probable upside, analysts plainly believe Prestige Consumer Healthcare is more favorable than Cresco Labs.

Profitability

This table compares Cresco Labs and Prestige Consumer Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cresco Labs	-7.79%	-14.25%	-3.90%
Prestige Consumer Healthcare	19.02%	12.69%	6.79%

Volatility & Risk

Cresco Labs has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Prestige Consumer Healthcare has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Insider and Institutional Ownership

0.1% of Cresco Labs shares are owned by institutional investors. Comparatively, 99.9% of Prestige Consumer Healthcare shares are owned by institutional investors. 1.4% of Prestige Consumer Healthcare 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.

Valuation & Earnings

This table compares Cresco Labs and Prestige Consumer Healthcare”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cresco Labs	$724.34 million	0.39	-$74.44 million	($0.15)	-5.33
Prestige Consumer Healthcare	$1.11 billion	2.58	$214.60 million	$4.03	14.77

Prestige Consumer Healthcare has higher revenue and earnings than Cresco Labs. Cresco Labs is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.

Summary

Prestige Consumer Healthcare beats Cresco Labs on 13 of the 14 factors compared between the two stocks.

About Cresco Labs

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections and fruit-forward gummies under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.