SNDL (NASDAQ:SNDL – Get Free Report) and TerrAscend (OTCMKTS:TSNDF – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
Institutional & Insider Ownership
5.8% of TerrAscend shares are held by institutional investors. 32.2% of TerrAscend shares are held by 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.
Profitability
This table compares SNDL and TerrAscend’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SNDL | -9.66% | -8.28% | -6.95% |
| TerrAscend | -42.72% | -18.32% | -4.36% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SNDL | $671.81 million | N/A | -$69.18 million | ($0.26) | -6.21 |
| TerrAscend | $306.68 million | 0.76 | -$80.23 million | ($0.41) | -1.85 |
SNDL has higher revenue and earnings than TerrAscend. SNDL is trading at a lower price-to-earnings ratio than TerrAscend, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
SNDL has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for SNDL and TerrAscend, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SNDL | 1 | 0 | 1 | 0 | 2.00 |
| TerrAscend | 1 | 0 | 0 | 2 | 3.00 |
SNDL currently has a consensus price target of $4.50, suggesting a potential upside of 178.64%. Given SNDL’s higher probable upside, research analysts clearly believe SNDL is more favorable than TerrAscend.
About SNDL
SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.
About TerrAscend
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.
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