Head-To-Head Review: Cyanotech (OTCMKTS:CYAN) vs. Ascend Wellness (OTCMKTS:AAWH)

Ascend Wellness (OTCMKTS:AAWH) and Cyanotech (OTCMKTS:CYAN) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Ascend Wellness and Cyanotech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ascend Wellness	0	1	0	0	2.00
Cyanotech	0	0	0	0	0.00

Risk and Volatility

Ascend Wellness has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Cyanotech has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500.

Profitability

This table compares Ascend Wellness and Cyanotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ascend Wellness	-26.24%	-1,099.51%	-12.44%
Cyanotech	-7.03%	-20.62%	-7.52%

Institutional and Insider Ownership

17.3% of Ascend Wellness shares are owned by institutional investors. Comparatively, 24.4% of Cyanotech shares are owned by institutional investors. 21.6% of Ascend Wellness shares are owned by company insiders. Comparatively, 34.4% of Cyanotech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Ascend Wellness and Cyanotech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ascend Wellness	$500.58 million	0.22	-$118.19 million	($0.64)	-0.85
Cyanotech	$24.22 million	0.11	-$3.20 million	($0.25)	-1.48

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

Summary

Cyanotech beats Ascend Wellness on 7 of the 12 factors compared between the two stocks.

About Ascend Wellness

Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.

About Cyanotech

Cyanotech Corp. engages in the cultivation, production, and sale of natural products derived from microalgae for the health and human nutrition markets worldwide. Its products include BioAstin Hawaiian Astaxanthin, a dietary antioxidant, which is used as a human dietary supplement and dietary ingredient to support and maintain the body’s natural inflammatory response, enhance skin, and support eye, joint, and immune health; and Hawaiian Spirulina Pacifica, a nutrient-rich dietary supplement that is used for extra energy, a strengthened immune system, cardiovascular benefits, and as a source of antioxidant carotenoids. The company was founded by Gerald R. Cysewski in 1983 and is headquartered in Kailua-Kona, HI.