Analyzing Covetrus (NASDAQ:CVET) & General Cannabis (OTCMKTS:CANN)

Covetrus (NASDAQ:CVETGet Rating) and General Cannabis (OTCMKTS:CANNGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares Covetrus and General Cannabis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covetrus -1.18% 1.63% 0.72%
General Cannabis -149.64% -128.29% -46.38%

Analyst Recommendations

This is a summary of current ratings for Covetrus and General Cannabis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covetrus 0 2 3 0 2.60
General Cannabis 0 0 0 0 N/A

Covetrus presently has a consensus target price of $28.60, indicating a potential upside of 90.67%. Given Covetrus’ higher possible upside, equities analysts plainly believe Covetrus is more favorable than General Cannabis.

Earnings & Valuation

This table compares Covetrus and General Cannabis’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Covetrus $4.58 billion 0.45 -$54.00 million ($0.39) -38.46
General Cannabis $5.93 million 6.69 -$8.87 million N/A N/A

General Cannabis has lower revenue, but higher earnings than Covetrus.

Insider and Institutional Ownership

97.5% of Covetrus shares are owned by institutional investors. 0.4% of Covetrus shares are owned by insiders. Comparatively, 38.0% of General Cannabis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Covetrus has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, General Cannabis has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Summary

Covetrus beats General Cannabis on 8 of the 11 factors compared between the two stocks.

About Covetrus (Get Rating)

Covetrus, Inc., together with its subsidiaries, operates as an animal-health technology and services company. It engages in the sale of animal-health consumable products, including proprietary and Covetrus branded products, small equipment, laboratory products, large equipment, equipment repair services, branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, parasiticides, and vitamins and supplements to wholesale and retail customers. The company also offers value-added solutions, such as inventory management and e-commerce, as well as continuing education services for practitioners. In addition, it provides practice management software, data-driven applications, client communications tools, and related services to increase staff efficiency and enhance business health; and solutions that integrate with its software platforms, including client communication services, reminders, data backup services, hardware sales and support, and credit card processing services for veterinary practitioners and animal-health clinics. Further, the company engages in the distribution of finished goods pharmacy and specialty pharmaceutical compounding products, as well as offers shipping, manufacturer incentives, service fees, and data integration and support services. It serves animal-health and veterinary practices, and clinics in the companion-animal, equine, and large-animal markets primarily in North America, Europe, and the Asia Pacific. The company was formerly known as HS Spinco, Inc. Covetrus, Inc. was incorporated in 2018 and is headquartered in Portland, Maine.

About General Cannabis (Get Rating)

General Cannabis Corp provides products and services to the regulated cannabis industry and non-cannabis customers in the United States. The company operates in three segments: Operations, Cultivation, and Investments. The Operations segment provides consulting services to the cannabis industry comprising obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations. This segment also provides sourcing and stocking services to cultivation, retail, and infused products manufacturing facilities. The Cultivation segment operates 17,000 square foot of licensed light deprivation greenhouse cultivation facility. The Investments segment provides debt or equity capital to cannabis businesses through investing in businesses. The company was formerly known as Advanced Cannabis Solutions, Inc. and changed its name to General Cannabis Corp in June 2015. General Cannabis Corp was incorporated in 2013 and is headquartered in Denver, Colorado.

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