Analyzing Tilray Brands (NASDAQ:TLRY) and Neogen (NASDAQ:NEOG)

Tilray Brands (NASDAQ:TLRY) and Neogen (NASDAQ:NEOG) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Valuation & Earnings

This table compares Tilray Brands and Neogen”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tilray Brands	$821.31 million	1.98	-$2.19 billion	($2.27)	-0.64
Neogen	$894.66 million	1.49	-$1.09 billion	($4.80)	-1.28

Neogen has higher revenue and earnings than Tilray Brands. Neogen is trading at a lower price-to-earnings ratio than Tilray Brands, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

9.4% of Tilray Brands shares are owned by institutional investors. Comparatively, 96.7% of Neogen shares are owned by institutional investors. 0.8% of Tilray Brands shares are owned by company insiders. Comparatively, 0.6% of Neogen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Tilray Brands has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Neogen has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Tilray Brands and Neogen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tilray Brands	2	3	2	0	2.00
Neogen	1	4	1	0	2.00

Tilray Brands presently has a consensus target price of $2.00, suggesting a potential upside of 37.93%. Neogen has a consensus target price of $8.83, suggesting a potential upside of 43.87%. Given Neogen’s higher possible upside, analysts clearly believe Neogen is more favorable than Tilray Brands.

Profitability

This table compares Tilray Brands and Neogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tilray Brands	-258.54%	-6.79%	-5.30%
Neogen	-117.61%	2.23%	1.42%

Summary

Neogen beats Tilray Brands on 7 of the 13 factors compared between the two stocks.

About Tilray Brands

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Canada.

About Neogen

Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods. The segment offers its products primarily to milling and grain, meat and poultry, prepared foods and ingredients, fruits and vegetables, seafood, dairy, beverage, water, healthcare, traditional culture media markets, food service, and dietary supplements markets. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent control products, cleaners, disinfectants, insect control products, and genomics testing services marketed through veterinarians, retailers, livestock producers, and animal health product distributors, for the animal safety market. The segment offers its products for companion animal veterinarians; livestock producers, veterinarians, and breed associations; retailers; breeding and genetics companies; diagnostic labs and universities; distributors; and other manufacturers and government agencies. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.