Trulieve Cannabis (NYSE:TRLV – Get Free Report) and Sol-Gel Technologies (NASDAQ:SLGL – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
26.2% of Sol-Gel Technologies shares are held by institutional investors. 3.8% of Trulieve Cannabis shares are held by insiders. Comparatively, 66.5% of Sol-Gel Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Trulieve Cannabis and Sol-Gel Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trulieve Cannabis | $1.14 billion | 1.82 | -$116.38 million | $0.11 | 98.11 |
| Sol-Gel Technologies | $1.79 million | 120.03 | -$6.13 million | ($5.64) | -11.67 |
Sol-Gel Technologies has lower revenue, but higher earnings than Trulieve Cannabis. Sol-Gel Technologies is trading at a lower price-to-earnings ratio than Trulieve Cannabis, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trulieve Cannabis and Sol-Gel Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trulieve Cannabis | -41.55% | -4.24% | -1.72% |
| Sol-Gel Technologies | -910.14% | -44.05% | -36.96% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Trulieve Cannabis and Sol-Gel Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trulieve Cannabis | 1 | 1 | 1 | 0 | 2.00 |
| Sol-Gel Technologies | 1 | 0 | 4 | 2 | 3.00 |
Trulieve Cannabis presently has a consensus price target of $15.00, suggesting a potential upside of 38.99%. Sol-Gel Technologies has a consensus price target of $197.50, suggesting a potential upside of 200.11%. Given Sol-Gel Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Sol-Gel Technologies is more favorable than Trulieve Cannabis.
Summary
Sol-Gel Technologies beats Trulieve Cannabis on 8 of the 14 factors compared between the two stocks.
About Trulieve Cannabis
Trulieve Cannabis Corp., together with its subsidiaries, operates as a medical cannabis company. The company cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia, as well as directly to patients through home delivery. It produces approximately 550 stock keeping units, including flower, edibles, vaporizer cartridges, concentrates, topicals, capsules, tinctures, dissolvable powders, and nasal sprays. As of May 5, 2021, the company operated through 87 dispensaries in the United States. The company is headquartered in Quincy, Florida.
About Sol-Gel Technologies
Sol-Gel Technologies Ltd., together with its subsidiary Sol-Gel Technologies Inc., develops topical dermatological drugs for patients with severe skin conditions in Israel. The company offers Twyneo, a once-daily, non-antibiotic topical cream for the treatment of acne vulgaris; and Epsolay, a once-daily topical cream for the treatment of papulopustular (subtype II) rosacea. It also develops SGT-610 that is in Phase 3 clinical trials for the treatment of Gorlin Syndrome; and SGT-210, which has completed Phase I clinical trial, to treat rare hyperkeratinization disorders, such as Darier, PC, PPK, Olmsted, etc. In addition, the company is also involved in the development of generic topical dermatological drug products. It has collaboration with Padagis Israel Pharmaceuticals Ltd; and license agreements with Galderma Holding SA and Searchlight Pharma Inc. Sol-Gel Technologies Ltd. was incorporated in 1997 and is headquartered in Ness Ziona, Israel.
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