Flora Growth (NASDAQ:FLGC – Get Free Report) and HeartSciences (NASDAQ:HSCS – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.
Institutional and Insider Ownership
36.0% of Flora Growth shares are held by institutional investors. Comparatively, 17.2% of HeartSciences shares are held by institutional investors. 2.3% of Flora Growth shares are held by insiders. Comparatively, 4.9% of HeartSciences shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Flora Growth has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500. Comparatively, HeartSciences has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.
Profitability
This table compares Flora Growth and HeartSciences’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flora Growth | -32.03% | -64.02% | -34.46% |
| HeartSciences | N/A | -816.90% | -181.97% |
Earnings & Valuation
This table compares Flora Growth and HeartSciences”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flora Growth | $57.61 million | 0.07 | -$15.91 million | ($32.49) | -0.12 |
| HeartSciences | $4,519.00 | 3,408.70 | -$9.14 million | ($3.22) | -0.99 |
HeartSciences has lower revenue, but higher earnings than Flora Growth. HeartSciences is trading at a lower price-to-earnings ratio than Flora Growth, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Flora Growth and HeartSciences, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flora Growth | 1 | 0 | 0 | 0 | 1.00 |
| HeartSciences | 1 | 0 | 1 | 0 | 2.00 |
HeartSciences has a consensus price target of $8.00, suggesting a potential upside of 151.57%. Given HeartSciences’ stronger consensus rating and higher probable upside, analysts clearly believe HeartSciences is more favorable than Flora Growth.
Summary
HeartSciences beats Flora Growth on 8 of the 14 factors compared between the two stocks.
About Flora Growth
Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.
About HeartSciences
Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.
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