Financial Comparison: Pervasip (OTCMKTS:PVSP) and Cronos Group (NASDAQ:CRON)

Pervasip (OTCMKTS:PVSP) and Cronos Group (NASDAQ:CRON) are both small-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

8.7% of Cronos Group shares are held by institutional investors. 9.2% of Pervasip shares are held by company insiders. Comparatively, 2.0% of Cronos Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Pervasip has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Cronos Group has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Profitability

This table compares Pervasip and Cronos Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pervasip	-14.89%	N/A	-26.25%
Cronos Group	-84.15%	-3.99%	-3.87%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Pervasip and Cronos Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pervasip	0	0	0	0	N/A
Cronos Group	1	0	2	0	2.33

Cronos Group has a consensus price target of $2.83, indicating a potential upside of 9.40%. Given Cronos Group’s higher possible upside, analysts plainly believe Cronos Group is more favorable than Pervasip.

Earnings and Valuation

This table compares Pervasip and Cronos Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pervasip	$15.77 million	0.14	-$2.35 million	N/A	N/A
Cronos Group	$87.24 million	11.34	-$73.96 million	($0.19)	-13.63

Pervasip has higher earnings, but lower revenue than Cronos Group.

Summary

Cronos Group beats Pervasip on 7 of the 11 factors compared between the two stocks.

About Pervasip

Pervasip Corporation focuses on developing cloud-based applications to monitor and control greenhouse facilities. It intends to develop and deliver products and technologies to agricultural markets; develop scientific methods for the analysis of cannabinoids in flowers, concentrates, and edibles; and assist medical marijuana specialty production facilities to regulate, calculate proper dosage, and understand the importance of consistency in product. The company was formerly known as eLEC Communications Corp. and changed its name to Pervasip Corp. in December 2007. Pervasip Corp. was founded in 1964 and is based in White Plains, New York.

About Cronos Group

Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.