Reviewing HEXO (NYSE:HEXO) & Mind Medicine (MindMed) (NASDAQ:MNMD)

Mind Medicine (MindMed) (NASDAQ:MNMDGet Rating) and HEXO (NYSE:HEXOGet Rating) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Mind Medicine (MindMed) and HEXO, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mind Medicine (MindMed) 0 0 2 0 3.00
HEXO 1 4 3 0 2.25

Mind Medicine (MindMed) presently has a consensus target price of 8.00, indicating a potential upside of 727.99%. HEXO has a consensus target price of $4.24, indicating a potential upside of 678.68%. Given Mind Medicine (MindMed)’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Mind Medicine (MindMed) is more favorable than HEXO.

Valuation & Earnings

This table compares Mind Medicine (MindMed) and HEXO’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mind Medicine (MindMed) N/A N/A -$93.04 million -0.23 -4.20
HEXO $97.00 million 2.14 -$90.13 million ($2.44) -0.22

HEXO has higher revenue and earnings than Mind Medicine (MindMed). Mind Medicine (MindMed) is trading at a lower price-to-earnings ratio than HEXO, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mind Medicine (MindMed) and HEXO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mind Medicine (MindMed) N/A -55.27% -51.10%
HEXO -555.46% -22.43% -13.75%

Institutional and Insider Ownership

10.8% of Mind Medicine (MindMed) shares are held by institutional investors. Comparatively, 22.1% of HEXO shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

HEXO beats Mind Medicine (MindMed) on 7 of the 11 factors compared between the two stocks.

Mind Medicine (MindMed) Company Profile (Get Rating)

Mind Medicine (MindMed) Inc., a psychedelic medicine biotech company, discovers, develops, and deploys psychedelic inspired medicines and therapies to address addiction and mental illness. The company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances, including Psilocybin, LSD, MDMA, DMT, and an Ibogaine derivative, 18-MC. The company is headquartered in New York, New York.

HEXO Company Profile (Get Rating)

HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada. The company offers its adult-use and medical products under the HEXO brand name. It also provides cannabis beverages under the Little Victory, House of Terpenes, Mollo, Veryvell, and XMG brands; and cannabis products under UP Cannabis, Original Stash, and Up brand names. HEXO Corp. has a strategic alliance with Tilray Brands, Inc. The company was formerly known as The Hydropothecary Corporation and changed its name to HEXO Corp. in August 2018. HEXO Corp. was founded in 2013 and is headquartered in Gatineau, Canada.

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