Comparing Canopy Growth (NASDAQ:CGC) and 60 Degrees Pharmaceuticals (NASDAQ:SXTP)

60 Degrees Pharmaceuticals (NASDAQ:SXTP) and Canopy Growth (NASDAQ:CGC) are both small-cap healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings for 60 Degrees Pharmaceuticals and Canopy Growth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
60 Degrees Pharmaceuticals	1	2	1	0	2.00
Canopy Growth	1	2	2	0	2.20

60 Degrees Pharmaceuticals currently has a consensus target price of $13.85, indicating a potential upside of 1,376.55%. Given 60 Degrees Pharmaceuticals’ higher possible upside, equities analysts clearly believe 60 Degrees Pharmaceuticals is more favorable than Canopy Growth.

Earnings & Valuation

This table compares 60 Degrees Pharmaceuticals and Canopy Growth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
60 Degrees Pharmaceuticals	$1.41 million	2.34	-$7.36 million	($4.82)	-0.19
Canopy Growth	$251.01 million	1.65	-$190.29 million	($0.45)	-2.05

60 Degrees Pharmaceuticals has higher earnings, but lower revenue than Canopy Growth. Canopy Growth is trading at a lower price-to-earnings ratio than 60 Degrees Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

60 Degrees Pharmaceuticals has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares 60 Degrees Pharmaceuticals and Canopy Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
60 Degrees Pharmaceuticals	-650.21%	N/A	-136.81%
Canopy Growth	-65.33%	-21.91%	-14.34%

Institutional & Insider Ownership

8.0% of 60 Degrees Pharmaceuticals shares are held by institutional investors. Comparatively, 3.3% of Canopy Growth shares are held by institutional investors. 1.7% of 60 Degrees Pharmaceuticals shares are held by company insiders. Comparatively, 0.3% of Canopy Growth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

60 Degrees Pharmaceuticals beats Canopy Growth on 8 of the 14 factors compared between the two stocks.

About 60 Degrees Pharmaceuticals

60 Degrees Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and commercialization of therapies for the prevention and treatment of infectious diseases in the United States. The company offers Arakoda for malaria preventative treatment. It also engages in the development of Tafenoquine (Arakoda regimen) that is in Phase IIb clinical trial for COVID-19 indications; Tafenoquine, which is in phase IIA clinical trials for babesiosis, fungal pneumonias, and candidiasis disease; and Celgosivir for respiratory viruses and dengue. The company was founded in 2010 and is headquartered in Washington, the District of Columbia.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.