Head-To-Head Analysis: Canopy Growth (CGC) vs. The Competition

Canopy Growth (NYSE: CGC) is one of 33 public companies in the “Medicinals & botanicals” industry, but how does it compare to its peers? We will compare Canopy Growth to similar companies based on the strength of its earnings, profitability, valuation, institutional ownership, dividends, analyst recommendations and risk.

Risk and Volatility

Canopy Growth has a beta of 2.39, indicating that its share price is 139% more volatile than the S&P 500. Comparatively, Canopy Growth’s peers have a beta of 2.56, indicating that their average share price is 156% more volatile than the S&P 500.

Insider and Institutional Ownership

9.2% of Canopy Growth shares are held by institutional investors. Comparatively, 21.6% of shares of all “Medicinals & botanicals” companies are held by institutional investors. 0.3% of Canopy Growth shares are held by insiders. Comparatively, 25.8% of shares of all “Medicinals & botanicals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Canopy Growth and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Canopy Growth $297.34 million -$993.37 million 13.45
Canopy Growth Competitors $218.50 million -$99.79 million 1.73

Canopy Growth has higher revenue, but lower earnings than its peers. Canopy Growth is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Canopy Growth and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canopy Growth -439.18% -21.30% -15.22%
Canopy Growth Competitors -163.69% -267.59% -46.37%

Analyst Ratings

This is a summary of current ratings for Canopy Growth and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canopy Growth 3 12 4 1 2.15
Canopy Growth Competitors 136 361 413 14 2.33

Canopy Growth currently has a consensus target price of $28.69, suggesting a potential upside of 61.52%. As a group, “Medicinals & botanicals” companies have a potential upside of 129.94%. Given Canopy Growth’s peers stronger consensus rating and higher possible upside, analysts clearly believe Canopy Growth has less favorable growth aspects than its peers.

Summary

Canopy Growth peers beat Canopy Growth on 9 of the 13 factors compared.

Canopy Growth Company Profile

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. Canopy Growth Corporation has a clinical research partnership with NEEKA Health Canada to investigate the efficacy of cannabinoids for the treatment of post-concussion neurological diseases in former NHL players; and partnership with Parent Action on Drugs. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.

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