Canopy Growth (NASDAQ:CGC) vs. Elanco Animal Health (NYSE:ELAN) Head-To-Head Review

Canopy Growth (NASDAQ:CGC) and Elanco Animal Health (NYSE:ELAN) are both healthcare companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Institutional and Insider Ownership

3.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 97.5% of Elanco Animal Health shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 1.1% of Elanco Animal Health shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Canopy Growth and Elanco Animal Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canopy Growth	-65.33%	-21.91%	-14.34%
Elanco Animal Health	-3.96%	8.13%	3.99%

Risk and Volatility

Canopy Growth has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Elanco Animal Health has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Valuation and Earnings

This table compares Canopy Growth and Elanco Animal Health”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canopy Growth	$251.01 million	1.26	-$190.29 million	($0.45)	-1.57
Elanco Animal Health	$4.71 billion	2.61	-$232.00 million	($0.41)	-59.99

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Canopy Growth and Elanco Animal Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canopy Growth	1	2	2	0	2.20
Elanco Animal Health	1	3	9	1	2.71

Elanco Animal Health has a consensus price target of $29.33, indicating a potential upside of 19.27%. Given Elanco Animal Health’s stronger consensus rating and higher possible upside, analysts clearly believe Elanco Animal Health is more favorable than Canopy Growth.

Summary

Elanco Animal Health beats Canopy Growth on 13 of the 15 factors compared between the two stocks.

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.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.