Canopy Growth (CGC) & Its Rivals Critical Analysis

Canopy Growth (NASDAQ: CGC) is one of 37 publicly-traded companies in the “Medicinals & botanicals” industry, but how does it compare to its rivals? We will compare Canopy Growth to related companies based on the strength of its dividends, analyst recommendations, institutional ownership, profitability, earnings, valuation and risk.

Risk and Volatility

Canopy Growth has a beta of 2.25, indicating that its stock price is 125% more volatile than the S&P 500. Comparatively, Canopy Growth’s rivals have a beta of 1.71, indicating that their average stock price is 71% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Canopy Growth and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canopy Growth 0 0 0 0 N/A
Canopy Growth Competitors 151 380 423 14 2.31

As a group, “Medicinals & botanicals” companies have a potential upside of 24.93%. Given Canopy Growth’s rivals higher probable upside, analysts clearly believe Canopy Growth has less favorable growth aspects than its rivals.

Profitability

This table compares Canopy Growth and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canopy Growth -312.84% -13.11% -9.66%
Canopy Growth Competitors -255.60% -252.27% -43.85%

Insider and Institutional Ownership

8.9% of Canopy Growth shares are owned by institutional investors. Comparatively, 20.2% of shares of all “Medicinals & botanicals” companies are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 23.6% of shares of all “Medicinals & botanicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Canopy Growth and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Canopy Growth $297.34 million -$993.37 million 21.97
Canopy Growth Competitors $219.63 million -$128.96 million -1.95

Canopy Growth has higher revenue, but lower earnings than its rivals. Canopy Growth is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Canopy Growth rivals beat Canopy Growth on 6 of the 10 factors compared.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis for recreational and medical purposes primarily in Canada, the United States, Germany, and the United Kingdom. It operates through two segments, Cannabis, Hemp and Other Consumer Products; and Canopy Rivers. The company's products include dried cannabis flowers, oils and concentrates, and softgel capsules. It offers its products under the Tweed, Quatreau, Deep Space, Spectrum Therapeutics, First & Free, TWD, This Works, BioSteel, DNA Genetics CraftGrow, Tokyo Smoke, DOJA, Van der Pop, and Bean & Bud brands. The company also provides growth capital and a strategic support platform that pursues investment opportunities in the global cannabis sector. Canopy Growth Corporation has a clinical research partnership with NEEKA Health Canada and NHL Alumni Association to examine the efficacy of CBD-based therapies as part of the mitigation of persistent post-concussion symptoms. As of February 14, 2020, it operated 28 cannabis retail stores under the Tweed or Tokyo Smoke name. 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.

Receive News & Ratings for Canopy Growth Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Canopy Growth and related companies with MarketBeat.com's FREE daily email newsletter.