Senestech (NASDAQ:SNES – Get Free Report) and TerrAscend (OTCMKTS:TSNDF – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, profitability, institutional ownership, analyst recommendations, dividends and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Senestech and TerrAscend, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Senestech | 1 | 1 | 0 | 1 | 2.33 |
| TerrAscend | 0 | 0 | 0 | 2 | 4.00 |
Senestech currently has a consensus target price of $10.00, indicating a potential upside of 201.20%. Given Senestech’s higher probable upside, analysts plainly believe Senestech is more favorable than TerrAscend.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Senestech | $1.86 million | 8.82 | -$6.18 million | ($5.44) | -0.61 |
| TerrAscend | $306.68 million | 0.70 | -$80.23 million | ($0.41) | -1.71 |
Senestech has higher earnings, but lower revenue than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than Senestech, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Senestech has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Profitability
This table compares Senestech and TerrAscend’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Senestech | -289.01% | -150.93% | -111.41% |
| TerrAscend | -40.86% | -23.19% | -6.35% |
Insider & Institutional Ownership
5.2% of Senestech shares are owned by institutional investors. Comparatively, 5.8% of TerrAscend shares are owned by institutional investors. 5.3% of Senestech shares are owned by insiders. Comparatively, 32.2% of TerrAscend shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
TerrAscend beats Senestech on 10 of the 14 factors compared between the two stocks.
About Senestech
SenesTech, Inc. develops a technology for managing animal pest populations through fertility control. It offers ContraPest, a liquid bait that limits reproduction of male and female rats. The company was incorporated in 2004 and is headquartered in Phoenix, Arizona.
About TerrAscend
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.
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