Critical Contrast: Flora Growth (NASDAQ:FLGC) versus Verano (OTCMKTS:VRNOF)

Flora Growth (NASDAQ:FLGCGet Free Report) and Verano (OTCMKTS:VRNOFGet Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Flora Growth and Verano, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flora Growth 1 0 0 0 1.00
Verano 1 0 0 1 2.50

Profitability

This table compares Flora Growth and Verano’s 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%
Verano -41.68% -9.54% -4.51%

Insider and Institutional Ownership

36.0% of Flora Growth shares are held by institutional investors. Comparatively, 9.0% of Verano shares are held by institutional investors. 2.3% of Flora Growth shares are held by insiders. Comparatively, 9.1% of Verano shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Flora Growth and Verano”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flora Growth $57.61 million 0.08 -$15.91 million ($32.49) -0.13
Verano $878.59 million 0.52 -$341.86 million ($0.98) -1.29

Flora Growth has higher earnings, but lower revenue than Verano. Verano is trading at a lower price-to-earnings ratio than Flora Growth, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Flora Growth has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Verano has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Summary

Verano beats Flora Growth on 8 of the 13 factors compared between the two stocks.

About Flora Growth

(Get Free Report)

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 Verano

(Get Free Report)

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.

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