Contrasting SNDL (NASDAQ:SNDL) and Organigram Global (NASDAQ:OGI)

Organigram Global (NASDAQ:OGI) and SNDL (NASDAQ:SNDL) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Earnings and Valuation

This table compares Organigram Global and SNDL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Organigram Global	$117.47 million	2.07	-$33.39 million	$0.05	36.20
SNDL	$671.81 million	1.01	-$69.18 million	($0.27)	-9.52

Organigram Global has higher earnings, but lower revenue than SNDL. SNDL is trading at a lower price-to-earnings ratio than Organigram Global, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Organigram Global has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, SNDL has a beta of 3.92, suggesting that its share price is 292% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Organigram Global and SNDL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Organigram Global	0	0	0	0	0.00
SNDL	0	0	1	0	3.00

SNDL has a consensus target price of $4.50, suggesting a potential upside of 75.10%. Given SNDL’s stronger consensus rating and higher probable upside, analysts clearly believe SNDL is more favorable than Organigram Global.

Profitability

This table compares Organigram Global and SNDL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Organigram Global	2.86%	-8.19%	-5.79%
SNDL	-10.38%	-8.58%	-7.23%

Institutional & Insider Ownership

34.6% of Organigram Global shares are held by institutional investors. 0.1% of Organigram Global shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Organigram Global beats SNDL on 9 of the 14 factors compared between the two stocks.

About Organigram Global

Organigram Holdings Inc., through its subsidiaries, engages in the production and sale of cannabis and cannabis-derived products in Canada. It offers medical cannabis products, including whole flower, milled flower, pre-rolls, infused pre-rolls, vapes, gummies, and concentrates for medical retailers; adult use recreational cannabis under the SHRED, Holy Mountain, Big Bag O' Buds, Monjour, Trailblazer, SHRED'ems, Edison Cannabis Co., Edison JOLTS, Tremblant, and Laurentian brands. The company also engages in the wholesale shipping of cannabis plant cuttings, dried flowers, blends, pre-rolls, and cannabis derivative-based products to retailers and wholesalers for adult-use recreational cannabis. It sells its products through online, as well as consumer channels. The company was incorporated in 2010 and is headquartered in Toronto, Canada.

About SNDL

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.