Flora Growth (FLGC) vs. Its Rivals Financial Analysis

Flora Growth (NASDAQ:FLGC) is one of 978 publicly-traded companies in the “Pharmaceutical preparations” industry, but how does it contrast to its peers? We will compare Flora Growth to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.

Volatility & Risk

Flora Growth has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Flora Growth’s peers have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Flora Growth and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Flora Growth	$37.17 million	-$52.42 million	-0.30
Flora Growth Competitors	$2.12 billion	$228.17 million	-2.78

Flora Growth’s peers have higher revenue and earnings than Flora Growth. Flora Growth is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

40.1% of shares of all “Pharmaceutical preparations” companies are owned by institutional investors. 17.6% of Flora Growth shares are owned by insiders. Comparatively, 15.0% of shares of all “Pharmaceutical preparations” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Flora Growth and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flora Growth	-107.04%	-54.20%	-36.13%
Flora Growth Competitors	-2,227.64%	-329.28%	-32.72%

Analyst Ratings

This is a breakdown of current ratings for Flora Growth and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flora Growth	0	0	3	0	3.00
Flora Growth Competitors	5068	16626	42011	800	2.60

Flora Growth currently has a consensus price target of $40.00, suggesting a potential upside of 1,001.93%. As a group, “Pharmaceutical preparations” companies have a potential upside of 70.71%. Given Flora Growth’s stronger consensus rating and higher possible upside, research analysts plainly believe Flora Growth is more favorable than its peers.

Summary

Flora Growth beats its peers on 7 of the 13 factors compared.

Flora Growth Company Profile

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products to pharmacies, medical clinics, and cosmetic companies worldwide. It cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products; offers skincare and beauty products; develops plant-based and medical-grade pharmaceuticals, phytotherapeutics, and dietary supplements. The company also manufactures, distributes, and retails cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; lifestyle wellness products; provides cannabis consumption accessories, personal storage, and travel accessories for vape and dry herb categories; and offers fruit juices and canned goods in supermarkets, discount retailers, coffee shops, restaurants, and airports. In addition, it provides beverage products; cannabis formulations to treat ailments, such as anxiety, insomnia, and pain. The company sells its products under the JustCBD, Vessel, and Mambe, as well as Stardog Loungewear, No Cap Hemp Co, Original Hemp, Kalaya, and Mind Naturals brands. Flora Growth Corp. was incorporated in 2019 and is headquartered in Toronto, Canada.