Critical Survey: Verano (OTCMKTS:VRNOF) and Organigram Global (NASDAQ:OGI)

Organigram Global (NASDAQ:OGI) and Verano (OTCMKTS:VRNOF) are both small-cap medical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Valuation and Earnings

This table compares Organigram Global and Verano”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organigram Global	$185.07 million	1.17	-$17.70 million	($0.11)	-14.55
Verano	$878.59 million	0.52	-$341.86 million	($0.98)	-1.29

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

Profitability

This table compares Organigram Global and Verano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organigram Global	-9.99%	-16.91%	-11.43%
Verano	-41.68%	-9.54%	-4.51%

Risk and Volatility

Organigram Global has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Verano has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Organigram Global and Verano, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organigram Global	1	0	1	0	2.00
Verano	1	0	0	1	2.50

Insider and Institutional Ownership

34.6% of Organigram Global shares are owned by institutional investors. Comparatively, 9.0% of Verano shares are owned by institutional investors. 0.1% of Organigram Global shares are owned by company insiders. Comparatively, 9.1% of Verano shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

About Organigram Global

Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.

About Verano

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.