Head-To-Head Contrast: Cresco Labs (OTCMKTS:CRLBF) versus Spectral AI (NASDAQ:MDAI)

Cresco Labs (OTCMKTS:CRLBF) and Spectral AI (NASDAQ:MDAI) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

0.1% of Cresco Labs shares are owned by institutional investors. Comparatively, 67.1% of Spectral AI shares are owned by institutional investors. 13.7% of Spectral AI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cresco Labs and Spectral AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cresco Labs	0	0	1	2	3.67
Spectral AI	1	0	1	1	2.67

Spectral AI has a consensus price target of $4.00, suggesting a potential upside of 161.44%. Given Spectral AI’s higher possible upside, analysts clearly believe Spectral AI is more favorable than Cresco Labs.

Risk & Volatility

Cresco Labs has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, Spectral AI has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Cresco Labs and Spectral AI”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cresco Labs	$655.85 million	0.34	-$135.41 million	($0.30)	-1.98
Spectral AI	$19.65 million	2.51	-$7.57 million	($0.35)	-4.37

Spectral AI has lower revenue, but higher earnings than Cresco Labs. Spectral AI is trading at a lower price-to-earnings ratio than Cresco Labs, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cresco Labs and Spectral AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cresco Labs	-15.50%	-7.53%	-1.68%
Spectral AI	-69.27%	N/A	-78.56%

Summary

Cresco Labs beats Spectral AI on 7 of the 13 factors compared between the two stocks.

About Cresco Labs

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections and fruit-forward gummies under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.

About Spectral AI

Spectral AI, Inc., an artificial intelligence (AI) company, focuses on developing predictive medical diagnostics in the United States. The company develops medical diagnostics for faster and accurate treatment decisions in wound care with applications involving patients with burns and diabetic foot ulcers. Its products include DeepView System, a predictive analytics platform integrated with the predictive AI-Burn, which combines AI algorithms and multispectral imaging (MSI) imaging for an assessment of wound healing potential and offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention; and DeepView SnapShot M, a handheld, portable, and wireless diagnostic tool, that provides a potential enhanced and expanded use for the government and emergency care, first responders, and potentially home health care professionals. The company is headquartered in Dallas, Texas.