Analyzing Canopy Growth (CGC) and Natural Alternatives International (NAII)

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Canopy Growth (NYSE:CGC) and Natural Alternatives International (NASDAQ:NAII) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Canopy Growth and Natural Alternatives International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canopy Growth 0 3 7 0 2.70
Natural Alternatives International 0 0 0 0 N/A

Canopy Growth currently has a consensus price target of $64.82, indicating a potential upside of 36.52%. Given Canopy Growth’s higher possible upside, research analysts clearly believe Canopy Growth is more favorable than Natural Alternatives International.

Profitability

This table compares Canopy Growth and Natural Alternatives International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canopy Growth -267.40% -14.39% -11.12%
Natural Alternatives International 6.74% 13.63% 10.64%

Valuation and Earnings

This table compares Canopy Growth and Natural Alternatives International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canopy Growth $60.79 million 268.79 -$54.88 million ($0.32) -148.38
Natural Alternatives International $132.44 million 0.71 $5.05 million N/A N/A

Natural Alternatives International has higher revenue and earnings than Canopy Growth.

Risk and Volatility

Canopy Growth has a beta of 4.17, suggesting that its share price is 317% more volatile than the S&P 500. Comparatively, Natural Alternatives International has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Insider & Institutional Ownership

8.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 32.0% of Natural Alternatives International shares are owned by institutional investors. 28.0% of Natural Alternatives International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Natural Alternatives International beats Canopy Growth on 8 of the 12 factors compared between the two stocks.

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, Bedrocan Canada, 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. 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.

Natural Alternatives International Company Profile

Natural Alternatives International, Inc. engages in formulating, manufacturing, and marketing nutritional supplements in the United States and internationally. It operates through two segments, Private-Label Contract Manufacturing, and Patent and Trademark Licensing. The company offers private-label contract manufacturing services to companies that market and distribute vitamins, minerals, herbal, and other nutritional supplements, as well as other health care products. It also provides strategic partnering services, such as customized product formulation, clinical studies, manufacturing, marketing support, international regulatory and label law compliance, international product registration, packaging in multiple formats and labeling design, scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, packaging and delivery system design, and regulatory review. In addition, the company sells beta-alanine ingredient under the CarnoSyn and SR CarnoSyn names. It manufactures products in various forms, including capsules, tablets, chewable wafers, and powders. The company's private-label contract manufacturing customers include companies that market nutritional supplements through direct sales marketing channels, direct to consumer e-commerce channels, and retail stores. Natural Alternatives International, Inc. was founded in 1980 and is headquartered in Carlsbad, California.

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