Financial Review: Canopy Growth (NASDAQ:CGC) versus Parnell Pharmaceuticals (OTCMKTS:PARNF)

Parnell Pharmaceuticals (OTCMKTS:PARNF) and Canopy Growth (NASDAQ:CGC) are both small-cap healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Risk & Volatility

Parnell Pharmaceuticals has a beta of 21.16, suggesting that its stock price is 2,016% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Parnell Pharmaceuticals and Canopy Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parnell Pharmaceuticals	N/A	N/A	N/A
Canopy Growth	-65.33%	-21.91%	-14.34%

Institutional & Insider Ownership

3.3% of Canopy Growth shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Parnell Pharmaceuticals and Canopy Growth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parnell Pharmaceuticals	0	0	0	0	0.00
Canopy Growth	1	2	2	0	2.20

Valuation & Earnings

This table compares Parnell Pharmaceuticals and Canopy Growth”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parnell Pharmaceuticals	N/A	N/A	N/A	N/A	N/A
Canopy Growth	$251.01 million	1.74	-$190.29 million	($0.45)	-2.16

Parnell Pharmaceuticals has higher earnings, but lower revenue than Canopy Growth.

Summary

Canopy Growth beats Parnell Pharmaceuticals on 5 of the 9 factors compared between the two stocks.

About Parnell Pharmaceuticals

Parnell Pharmaceuticals Holdings Ltd, a commercial-stage pharmaceutical company, focuses on developing, manufacturing, and marketing animal pharmaceutical products worldwide. The company operates through four segments: Companion Animal, Production Animal – U.S., Production Animal – Rest of World, and Manufacturing Operations. It markets various products, including estroPLAN and GONAbreed reproductive hormone products for enhancing cattle breeding performance; Zydax for the treatment of osteoarthritis (OA) in dogs and horses; and Glyde, a nutraceutical product for the treatment of OA, as well as Parnell PROcept, which adds an additional injection of estroPLAN after the first injection. The company also offers mySYNCH, a digital tool to help veterinarians and producers optimize reproduction and maximize economic gains. Parnell Pharmaceuticals Holdings Ltd was incorporated in 2009 and is headquartered in Alexandria, Australia.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.