Outset Medical (NASDAQ:OM – Get Free Report) and Flora Growth (NASDAQ:FLGC – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Institutional & Insider Ownership
36.0% of Flora Growth shares are held by institutional investors. 2.5% of Outset Medical shares are held by company insiders. Comparatively, 2.3% of Flora Growth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Outset Medical and Flora Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Outset Medical | -63.06% | -61.67% | -28.25% |
| Flora Growth | -32.03% | -64.02% | -34.46% |
Volatility & Risk
Outset Medical has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Outset Medical and Flora Growth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Outset Medical | 1 | 1 | 3 | 0 | 2.40 |
| Flora Growth | 1 | 0 | 0 | 0 | 1.00 |
Outset Medical currently has a consensus price target of $10.00, suggesting a potential upside of 146.91%. Given Outset Medical’s stronger consensus rating and higher probable upside, analysts plainly believe Outset Medical is more favorable than Flora Growth.
Valuation & Earnings
This table compares Outset Medical and Flora Growth”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Outset Medical | $119.48 million | 0.64 | -$81.65 million | ($4.09) | -0.99 |
| Flora Growth | $57.61 million | 0.07 | -$15.91 million | ($32.49) | -0.11 |
Flora Growth has lower revenue, but higher earnings than Outset Medical. Outset Medical is trading at a lower price-to-earnings ratio than Flora Growth, indicating that it is currently the more affordable of the two stocks.
Summary
Outset Medical beats Flora Growth on 10 of the 14 factors compared between the two stocks.
About Outset Medical
Outset Medical, Inc., a medical technology company, engages in the development of a hemodialysis system for hemodialysis in the United States. The company offers Tablo Hemodialysis System, a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings; and manufactures, supports, and distributes for Tablo console, Tablo cartridge, and other consumables. It also provides Tablo Data Ecosystem, including TabloHub, a customer-facing portal; MyTablo, a patient-facing portal; and TabloDash, an internal data analytics platform. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
About Flora Growth
Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.
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