Critical Analysis: Medical Marijuana (MJNA) and The Competition

Medical Marijuana (OTCMKTS:MJNA) is one of 248 publicly-traded companies in the “Drug Manufacturers—Specialty & Generic” industry, but how does it compare to its peers? We will compare Medical Marijuana to related companies based on the strength of its earnings, risk, profitability, institutional ownership, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Medical Marijuana and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Marijuana	0	0	0	0	N/A
Medical Marijuana Competitors	200	1067	2127	23	2.58

As a group, “Drug Manufacturers—Specialty & Generic” companies have a potential upside of 18.32%. Given Medical Marijuana’s peers higher probable upside, analysts plainly believe Medical Marijuana has less favorable growth aspects than its peers.

Insider & Institutional Ownership

0.0% of Medical Marijuana shares are owned by institutional investors. Comparatively, 22.2% of shares of all “Drug Manufacturers—Specialty & Generic” companies are owned by institutional investors. 24.8% of shares of all “Drug Manufacturers—Specialty & Generic” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Medical Marijuana and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medical Marijuana	N/A	N/A	N/A
Medical Marijuana Competitors	-83.40%	-122.37%	-17.42%

Valuation and Earnings

This table compares Medical Marijuana and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Medical Marijuana	N/A	N/A	-1.01
Medical Marijuana Competitors	$895.89 million	$29.54 million	124.06

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

Summary

Medical Marijuana peers beat Medical Marijuana on 5 of the 8 factors compared.

About Medical Marijuana

Medical Marijuana, Inc., an investment holding company, operates in the cannabinoid-based nutraceutical industry. It focuses on the development, sale, and distribution of hemp oil that contains naturally occurring cannabinoids, including cannabidiol (CBD) and other products containing CBD-rich hemp oil; treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products; and nonpsychoactive cannabidiol products. The company is also involved in the research and development of new therapeutic agents that are designed to reduce oxidative stress and act as immuno-modulators and neuroprotectants; dietary supplements, skin care products, and prescription-based hemp oil under the Kannaway and HempMeds brands; and proprietary testing, genetics, labeling and packaging, tracking, and production and standardization methods for the medicinal cannabinoid industry. In addition, it offers RSHO oil for the treatment of various illnesses and conditions; and plant-based, non-GMO pet products for health and wellness, play and wear, and environmentally-friendly supplies. Medical Marijuana, Inc. was incorporated in 2005 and is based in San Diego, California.