Insulet (NASDAQ:PODD – Get Free Report) and Canopy Growth (NASDAQ:CGC – Get Free Report) are both medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares Insulet and Canopy Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Insulet | 10.01% | 23.78% | 9.30% |
| Canopy Growth | -155.76% | -89.93% | -44.24% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Insulet and Canopy Growth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Insulet | 0 | 3 | 16 | 0 | 2.84 |
| Canopy Growth | 3 | 1 | 0 | 0 | 1.25 |
Valuation & Earnings
This table compares Insulet and Canopy Growth”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Insulet | $2.07 billion | 10.50 | $418.30 million | $3.29 | 93.95 |
| Canopy Growth | $225.65 million | 1.46 | -$429.86 million | ($3.03) | -0.45 |
Insulet has higher revenue and earnings than Canopy Growth. Canopy Growth is trading at a lower price-to-earnings ratio than Insulet, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
3.3% of Canopy Growth shares are held by institutional investors. 0.4% of Insulet shares are held by insiders. Comparatively, 0.2% of Canopy Growth shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Insulet has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Summary
Insulet beats Canopy Growth on 13 of the 14 factors compared between the two stocks.
About Insulet
Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours. The company sells its products primarily through independent distributors and pharmacy channels, as well as directly in the United States, Canada, Europe, the Middle East, Australia, and internationally. Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.
About Canopy Growth
Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.
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