TerrAscend (OTCMKTS:TSNDF – Get Free Report) and SNDL (NASDAQ:SNDL – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
5.8% of TerrAscend shares are owned by institutional investors. 32.2% of TerrAscend shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares TerrAscend and SNDL”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TerrAscend | $306.68 million | 0.62 | -$80.23 million | ($0.41) | -1.50 |
| SNDL | $671.81 million | N/A | -$69.18 million | ($0.26) | -5.92 |
SNDL has higher revenue and earnings than TerrAscend. SNDL is trading at a lower price-to-earnings ratio than TerrAscend, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for TerrAscend and SNDL, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TerrAscend | 1 | 0 | 0 | 2 | 3.00 |
| SNDL | 1 | 0 | 1 | 0 | 2.00 |
SNDL has a consensus target price of $4.50, suggesting a potential upside of 192.21%. Given SNDL’s higher possible upside, analysts plainly believe SNDL is more favorable than TerrAscend.
Volatility and Risk
TerrAscend has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, SNDL has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Profitability
This table compares TerrAscend and SNDL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TerrAscend | -42.72% | -18.32% | -4.36% |
| SNDL | -9.66% | -8.28% | -6.95% |
About TerrAscend
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.
About SNDL
SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.
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