TerrAscend (OTCMKTS:TSNDF – Get Free Report) and LENSAR (NASDAQ:LNSR – Get Free Report) are both small-cap healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Risk and Volatility
TerrAscend has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Valuation & Earnings
This table compares TerrAscend and LENSAR”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TerrAscend | $260.56 million | 0.59 | -$81.33 million | ($0.11) | -4.50 |
| LENSAR | $58.44 million | 1.34 | -$34.28 million | ($0.33) | -19.30 |
LENSAR has lower revenue, but higher earnings than TerrAscend. LENSAR is trading at a lower price-to-earnings ratio than TerrAscend, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for TerrAscend and LENSAR, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TerrAscend | 0 | 1 | 0 | 0 | 2.00 |
| LENSAR | 1 | 0 | 2 | 0 | 2.33 |
LENSAR has a consensus price target of $11.33, suggesting a potential upside of 77.92%. Given LENSAR’s stronger consensus rating and higher possible upside, analysts plainly believe LENSAR is more favorable than TerrAscend.
Institutional and Insider Ownership
5.8% of TerrAscend shares are owned by institutional investors. Comparatively, 40.1% of LENSAR shares are owned by institutional investors. 31.9% of TerrAscend shares are owned by insiders. Comparatively, 65.8% of LENSAR 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.
Profitability
This table compares TerrAscend and LENSAR’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TerrAscend | -31.01% | -32.93% | -5.49% |
| LENSAR | 57.57% | -529.08% | 50.03% |
Summary
LENSAR beats TerrAscend on 9 of the 14 factors compared between the two stocks.
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.
About LENSAR
LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.
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