Pfizer (NYSE:PFE – Get Free Report) and Canopy Growth (NASDAQ:CGC – Get Free Report) are both healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Profitability
This table compares Pfizer and Canopy Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pfizer | 6.80% | 19.63% | 8.46% |
| Canopy Growth | -65.33% | -21.91% | -14.34% |
Insider & Institutional Ownership
68.4% of Pfizer shares are owned by institutional investors. Comparatively, 3.3% of Canopy Growth shares are owned by institutional investors. 0.6% of Pfizer shares are owned by insiders. Comparatively, 0.3% of Canopy Growth shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Pfizer has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Earnings and Valuation
This table compares Pfizer and Canopy Growth”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pfizer | $62.58 billion | 2.78 | $7.77 billion | $0.76 | 40.16 |
| Canopy Growth | $251.01 million | 1.24 | -$190.29 million | ($0.45) | -1.54 |
Pfizer has higher revenue and earnings than Canopy Growth. Canopy Growth is trading at a lower price-to-earnings ratio than Pfizer, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Pfizer and Canopy Growth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pfizer | 2 | 13 | 5 | 0 | 2.15 |
| Canopy Growth | 1 | 2 | 2 | 0 | 2.20 |
Pfizer presently has a consensus target price of $28.65, suggesting a potential downside of 6.13%. Given Pfizer’s higher probable upside, equities analysts clearly believe Pfizer is more favorable than Canopy Growth.
Summary
Pfizer beats Canopy Growth on 12 of the 14 factors compared between the two stocks.
About Pfizer
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. It also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Litfulo, Velsipity, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, Somavert, Ngenla, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Bosulif, Mektovi, Padcev, Adcetris, Talzenna, Tukysa, Elrexfio, Tivdak, Lorbrena, and Braftovi brands. In addition, the company involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; and BioNTech SE. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
About Canopy Growth
Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.
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