Natural Alternatives International (NASDAQ:NAII) and Canopy Growth (NYSE:CGC) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Insider and Institutional Ownership
32.0% of Natural Alternatives International shares are owned by institutional investors. Comparatively, 8.3% of Canopy Growth shares are owned by institutional investors. 28.0% of Natural Alternatives International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Natural Alternatives International and Canopy Growth’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Natural Alternatives International||6.74%||13.63%||10.64%|
Valuation & Earnings
This table compares Natural Alternatives International and Canopy Growth’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Natural Alternatives International||$132.44 million||0.78||$5.05 million||N/A||N/A|
|Canopy Growth||$60.79 million||265.33||-$54.88 million||($0.32)||-146.47|
Natural Alternatives International has higher revenue and earnings than Canopy Growth.
This is a summary of recent ratings for Natural Alternatives International and Canopy Growth, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Natural Alternatives International||0||0||0||0||N/A|
Canopy Growth has a consensus price target of $64.82, indicating a potential upside of 38.29%. Given Canopy Growth’s higher possible upside, analysts clearly believe Canopy Growth is more favorable than Natural Alternatives International.
Risk and Volatility
Natural Alternatives International has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 4.17, meaning that its stock price is 317% more volatile than the S&P 500.
Natural Alternatives International beats Canopy Growth on 8 of the 12 factors compared between the two stocks.
Natural Alternatives International Company Profile
Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States and internationally. It operates through two segments, Private-Label Contract Manufacturing, and Patent and Trademark Licensing. The company offers private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbal, and other nutritional supplements, as well as other health care products. It also provides strategic partnering services, such as customized product formulation, clinical studies, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats and labeling design, scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, packaging and delivery system design, and regulatory review. In addition, the company sells beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names. It manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. The company's private-label contract manufacturing customers include companies that market nutritional supplements through direct sales marketing channels, direct to consumer e-commerce channels, and retail stores. Natural Alternatives International, Inc. was founded in 1980 and is headquartered in Carlsbad, California.
Canopy Growth Company Profile
Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. Canopy Growth Corporation has a clinical research partnership with NEEKA Health Canada to investigate the efficacy of cannabinoids for the treatment of post-concussion neurological diseases in former NHL players. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.
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