Critical Analysis: CannaPharmaRX (OTCMKTS:CPMD) and Kronos Bio (NASDAQ:KRON)

CannaPharmaRX (OTCMKTS:CPMD) and Kronos Bio (NASDAQ:KRON) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings & Valuation

This table compares CannaPharmaRX and Kronos Bio”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CannaPharmaRX	N/A	N/A	$3.69 million	($0.05)	-0.11
Kronos Bio	$9.85 million	4.83	-$112.67 million	($1.43)	-0.55

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

Profitability

This table compares CannaPharmaRX and Kronos Bio’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CannaPharmaRX	N/A	N/A	-41.99%
Kronos Bio	-867.66%	-64.55%	-48.18%

Risk and Volatility

CannaPharmaRX has a beta of 2.35, meaning that its stock price is 135% more volatile than the S&P 500. Comparatively, Kronos Bio has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.

Institutional and Insider Ownership

64.1% of Kronos Bio shares are owned by institutional investors. 1.3% of CannaPharmaRX shares are owned by company insiders. Comparatively, 24.4% of Kronos Bio shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for CannaPharmaRX and Kronos Bio, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CannaPharmaRX	0	0	0	0	0.00
Kronos Bio	0	2	1	0	2.33

Kronos Bio has a consensus target price of $1.63, indicating a potential upside of 108.33%. Given Kronos Bio’s stronger consensus rating and higher probable upside, analysts clearly believe Kronos Bio is more favorable than CannaPharmaRX.

Summary

Kronos Bio beats CannaPharmaRX on 7 of the 13 factors compared between the two stocks.

About CannaPharmaRX

CannaPharmaRX, Inc. operates in the cannabis industry in Canada. It evaluates, negotiates, acquires, and develops various cannabis cultivation projects. The company was incorporated in 1998 and is based in Calgary, Canada.

About Kronos Bio

Kronos Bio, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of therapeutics for various cancer and other serious diseases in the United States. Its lead product candidates are KB-0742, an oral cyclin dependent kinase 9 inhibitor for the treatment of MYC-amplified solid tumors, which is in phase 2 clinical trial; and KB-9558, a core oncogenic transcription factor that drives multiple myeloma. The company was incorporated in 2017 and is headquartered in San Mateo, California.