Head-To-Head Review: Abbott Laboratories (NYSE:ABT) and TerrAscend (OTCMKTS:TSNDF)

Abbott Laboratories (NYSE:ABT) and TerrAscend (OTCMKTS:TSNDF) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

75.2% of Abbott Laboratories shares are held by institutional investors. Comparatively, 5.8% of TerrAscend shares are held by institutional investors. 0.5% of Abbott Laboratories shares are held by insiders. Comparatively, 31.6% of TerrAscend shares are held 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.

Risk and Volatility

Abbott Laboratories has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Profitability

This table compares Abbott Laboratories and TerrAscend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abbott Laboratories	13.90%	17.62%	10.01%
TerrAscend	-45.86%	-24.69%	-4.46%

Earnings & Valuation

This table compares Abbott Laboratories and TerrAscend”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Abbott Laboratories	$44.33 billion	3.48	$6.52 billion	$3.57	24.78
TerrAscend	$260.56 million	0.82	-$81.33 million	($0.10)	-6.90

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Abbott Laboratories and TerrAscend, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Abbott Laboratories	1	4	19	2	2.85
TerrAscend	0	1	0	1	3.00

Abbott Laboratories presently has a consensus price target of $118.30, indicating a potential upside of 33.71%. Given Abbott Laboratories’ higher possible upside, equities research analysts clearly believe Abbott Laboratories is more favorable than TerrAscend.

Summary

Abbott Laboratories beats TerrAscend on 12 of the 15 factors compared between the two stocks.

About Abbott Laboratories

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière’s disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

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.