Analyzing Jushi (OTCMKTS:JUSHF) & RxSight (NASDAQ:RXST)

Jushi (OTCMKTS:JUSHF) and RxSight (NASDAQ:RXST) are both small-cap healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Profitability

This table compares Jushi and RxSight’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jushi	-24.44%	N/A	-15.46%
RxSight	-36.80%	-17.35%	-14.70%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Jushi and RxSight, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jushi	0	0	1	0	3.00
RxSight	3	7	2	0	1.92

RxSight has a consensus target price of $8.17, indicating a potential upside of 72.05%. Given RxSight’s higher possible upside, analysts plainly believe RxSight is more favorable than Jushi.

Earnings & Valuation

This table compares Jushi and RxSight”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jushi	$262.91 million	0.32	-$68.59 million	($0.34)	-1.22
RxSight	$134.48 million	1.47	-$38.94 million	($1.13)	-4.20

RxSight has lower revenue, but higher earnings than Jushi. RxSight is trading at a lower price-to-earnings ratio than Jushi, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

21.7% of Jushi shares are held by institutional investors. Comparatively, 78.8% of RxSight shares are held by institutional investors. 23.1% of Jushi shares are held by company insiders. Comparatively, 10.1% of RxSight shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Jushi has a beta of -0.63, indicating that its share price is 163% less volatile than the S&P 500. Comparatively, RxSight has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

About Jushi

Jushi Holdings Inc., a vertically integrated cannabis company, engages in the cultivation, processing, retail, and distribution of cannabis for medical and adult-use markets. The company offers flower, extracts, concentrates, edibles, oil, pre-rolls, tinctures, capsules, softgels, cannabis-infused gummies and ultra-premium chocolate, and topicals products, as well as vaporization devices and cartridges under The Bank, The Lab, Nira+ Medicinals, Sèchè, Tasteology, and Hijinks brands. It is also involved in the bulk wholesale of refined cannabinoids and terpenes. In addition, the company operates medical cannabis dispensaries under the BEYOND/HELLO, Nature’s Remedy, and NuLeaf brands. It markets its products to local dispensaries and large multi-state operators. The company is headquartered in Boca Raton, Florida.

About RxSight

RxSight, Inc., a commercial-stage medical device company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight Light Adjustable Lens, a special photosensitive material that changes shape and power. RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.