American Bio Medica (OTCMKTS:ABMC) and TerrAscend (OTCMKTS:TSNDF) Financial Review

American Bio Medica (OTCMKTS:ABMC) and TerrAscend (OTCMKTS:TSNDF) are both healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares American Bio Medica and TerrAscend”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bio Medica	N/A	N/A	N/A	($0.02)	N/A
TerrAscend	$260.56 million	0.69	-$81.33 million	($0.11)	-5.31

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

Insider & Institutional Ownership

5.8% of TerrAscend shares are held by institutional investors. 3.1% of American Bio Medica shares are held by company insiders. Comparatively, 31.9% of TerrAscend shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for American Bio Medica and TerrAscend, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Bio Medica	0	0	0	0	0.00
TerrAscend	0	1	0	1	3.00

Given American Bio Medica’s higher possible upside, equities research analysts plainly believe American Bio Medica is more favorable than TerrAscend.

Profitability

This table compares American Bio Medica and TerrAscend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Bio Medica	N/A	N/A	N/A
TerrAscend	-31.01%	-32.93%	-5.49%

About American Bio Medica

American Bio Medica Corporation engages in manufacture and sale of lateral flow immunoassay tests primarily for the immediate detection of drugs in urine and oral fluids. Its drugs detection products in urine include Rapid Drug Screen, a rapid drug test, which detects the presence or absence of 2 to 10 drugs; RDS InCup, a drug-testing cup that detects the presence or absence of 1 to 12 drugs; Rapid TOX, a drug test in a cassette platform, which detects the presence or absence of 1 to 10 drugs; and Rapid TOX Cup II, a drug testing cup that detects the presence or absence of 1 to 16 drugs. The company also offers a test for the detection of respiratory syncytial virus; OralStat, a drug test for the detection of drugs in oral fluids, as well as private labeled versions of OralStat. In addition, the company distributes other products for the detection of substances of abuse, as well as products to detect certain infectious diseases. Further, it provides strip contract manufacturing, assembly, and packaging services to unaffiliated diagnostic companies. The company serves rehabilitation/drug treatment, pain management, other clinical, government, and employment/workplace markets. It operates in the United States, North America, Europe, the Asia Pacific, and South America. The company was formerly known as American Micro Media, Inc. and changed its name to American Bio Medica Corporation in September 1992. American Bio Medica Corporation was incorporated in 1986 and is based in Kinderhook, New York.

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.