Analyzing TerrAscend (OTCMKTS:TSNDF) & GE HealthCare Technologies (NASDAQ:GEHC)

GE HealthCare Technologies (NASDAQ:GEHC) and TerrAscend (OTCMKTS:TSNDF) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares GE HealthCare Technologies and TerrAscend”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE HealthCare Technologies	$20.62 billion	1.83	$2.08 billion	$4.74	17.65
TerrAscend	$260.56 million	0.54	-$81.33 million	($0.11)	-4.14

GE HealthCare Technologies has higher revenue and earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than GE HealthCare Technologies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

82.1% of GE HealthCare Technologies shares are owned by institutional investors. Comparatively, 5.8% of TerrAscend shares are owned by institutional investors. 0.4% of GE HealthCare Technologies shares are owned by company insiders. Comparatively, 31.9% of TerrAscend shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for GE HealthCare Technologies and TerrAscend, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE HealthCare Technologies	0	11	12	0	2.52
TerrAscend	0	1	0	0	2.00

GE HealthCare Technologies currently has a consensus target price of $80.87, suggesting a potential downside of 3.36%. Given GE HealthCare Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe GE HealthCare Technologies is more favorable than TerrAscend.

Profitability

This table compares GE HealthCare Technologies and TerrAscend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE HealthCare Technologies	9.96%	20.45%	5.97%
TerrAscend	-31.01%	-32.93%	-5.49%

Risk and Volatility

GE HealthCare Technologies has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Summary

GE HealthCare Technologies beats TerrAscend on 12 of the 14 factors compared between the two stocks.

About GE HealthCare Technologies

GE HealthCare Technologies Inc. is a global medical technology company that develops and provides equipment, software and services for healthcare providers. Its offerings support medical imaging, diagnosis, patient monitoring and treatment across a range of clinical settings. The company’s products include magnetic resonance imaging, computed tomography, molecular imaging and ultrasound systems, as well as patient monitoring and care solutions. Its Pharmaceutical Diagnostics business supplies contrast agents and radiopharmaceuticals used in medical imaging.

About TerrAscend

TerrAscend Corp. is a North American cannabis company that cultivates, processes, manufactures and sells cannabis products through a combination of wholesale and retail operations. Its product portfolio includes flower, pre-rolls, concentrates, vape products, edibles, tinctures, topicals and other cannabis-derived products. The company serves medical and adult-use cannabis markets in several U.S. states, including Pennsylvania, New Jersey, Maryland, Michigan, Ohio and California, as well as the Canadian market.