TerrAscend (OTCMKTS:TSNDF – Get Free Report) and Zynex (NASDAQ:ZYXI – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Institutional & Insider Ownership
5.8% of TerrAscend shares are held by institutional investors. Comparatively, 29.7% of Zynex shares are held by institutional investors. 31.6% of TerrAscend shares are held by company insiders. Comparatively, 49.3% of Zynex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares TerrAscend and Zynex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TerrAscend | -45.86% | -24.69% | -4.46% |
| Zynex | -68.35% | -804.30% | -36.67% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TerrAscend | 0 | 1 | 0 | 1 | 3.00 |
| Zynex | 1 | 2 | 1 | 0 | 2.00 |
Zynex has a consensus target price of $4.90, suggesting a potential upside of 3,820.00%. Given Zynex’s higher possible upside, analysts plainly believe Zynex is more favorable than TerrAscend.
Volatility and Risk
TerrAscend has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Zynex has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Earnings and Valuation
This table compares TerrAscend and Zynex”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TerrAscend | $260.56 million | 0.85 | -$81.33 million | ($0.10) | -7.19 |
| Zynex | $108.20 million | 0.04 | $2.99 million | ($2.43) | -0.05 |
Zynex has lower revenue, but higher earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than Zynex, indicating that it is currently the more affordable of the two stocks.
Summary
TerrAscend beats Zynex on 9 of the 15 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 Zynex
Zynex, Inc., together with its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography and electric stimulation technology device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; E-Wave, an NMES device; M-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and braces for rehabilitation support. Further, it offers Zynex Fluid Monitoring System (CM-1500); Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring and intravascular volume monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.
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