Otsuka (OTCMKTS:OTSKY – Get Free Report) and Ascend Wellness (OTCMKTS:AAWH – Get Free Report) are both healthcare companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Profitability
This table compares Otsuka and Ascend Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Otsuka | 15.50% | 12.86% | 9.59% |
| Ascend Wellness | -23.31% | -1,099.51% | -10.85% |
Insider and Institutional Ownership
17.3% of Ascend Wellness shares are held by institutional investors. 21.9% of Ascend Wellness shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Otsuka | $16.51 billion | 2.40 | $2.43 billion | $2.49 | 14.84 |
| Ascend Wellness | $500.58 million | 0.21 | -$118.19 million | ($0.57) | -0.92 |
Otsuka has higher revenue and earnings than Ascend Wellness. Ascend Wellness is trading at a lower price-to-earnings ratio than Otsuka, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Otsuka and Ascend Wellness, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Otsuka | 1 | 2 | 1 | 0 | 2.00 |
| Ascend Wellness | 0 | 1 | 0 | 0 | 2.00 |
Risk and Volatility
Otsuka has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Ascend Wellness has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Summary
Otsuka beats Ascend Wellness on 9 of the 12 factors compared between the two stocks.
About Otsuka
Otsuka Holdings Co., Ltd. engages in the pharmaceuticals, nutraceuticals, consumer products, and other businesses worldwide. The company develops pharmaceutical products in the fields of psychiatry, neurology, oncology, cardiovascular and renal system, digestive system, ophthalmology, and diagnostics, as well as intravenous solutions and medical devices. It also provides clinical testing, medical equipment, food products, cosmetics, functional food products, chemical products, soft drinks, beverages, analytical and measurement instruments, nutritional products, vehicle headlight testers, synthetic resin molded products, paper products, and insecticide and toiletry products. In addition, the company offers IT solution services; adhesive tapes; flaky titanate and compounds; IV solutions; infusion and clinical nutrition products; hydrazine; plant-based food products; reinsurance underwriting services; wine; stable isotopes; food supplements; urinary tract health products; software and services for management of mental healthcare systems; anticancer drugs; terracess; bio-pesticides; dietetic food products; spring and mineral water; and polyolefin foams. Further, it engages in the warehousing and transport, medical device operational management, shared service, environmental health management, and venture capital and incubation businesses; rental of medical devices and related products; purchase and sale of agricultural products; import and export trading business; tuberculosis research and development activities; manufacturing and development of xenotransplantation products; and processing and marketing of functional films, as well as planning, design, production, and construction of ceramic boards and arts, ceramic walls, reliefs, terracotta, ceramic OT and portraits, and ceramic sign boards; and operation of travel agency, and Hotel Ridge and California Table. Otsuka Holdings Co., Ltd. was founded in 1921 and is headquartered in Tokyo, Japan.
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.
Receive News & Ratings for Otsuka Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Otsuka and related companies with MarketBeat.com's FREE daily email newsletter.
