Stryker (NYSE:SYK) & IM Cannabis (NASDAQ:IMCC) Critical Analysis

IM Cannabis (NASDAQ:IMCC) and Stryker (NYSE:SYK) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares IM Cannabis and Stryker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IM Cannabis	-21.24%	-301.99%	-26.81%
Stryker	12.92%	24.41%	11.25%

Analyst Recommendations

This is a breakdown of current recommendations for IM Cannabis and Stryker, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	1	0	0	0	1.00
Stryker	0	5	14	0	2.74

Stryker has a consensus price target of $427.50, indicating a potential upside of 28.97%. Given Stryker’s stronger consensus rating and higher probable upside, analysts clearly believe Stryker is more favorable than IM Cannabis.

Risk and Volatility

IM Cannabis has a beta of 2.32, indicating that its stock price is 132% more volatile than the S&P 500. Comparatively, Stryker has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares IM Cannabis and Stryker”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IM Cannabis	$39.17 million	0.05	-$7.72 million	($1.41)	-0.24
Stryker	$25.12 billion	5.05	$3.25 billion	$8.40	39.46

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

Insider and Institutional Ownership

7.7% of IM Cannabis shares are owned by institutional investors. Comparatively, 77.1% of Stryker shares are owned by institutional investors. 5.9% of IM Cannabis shares are owned by company insiders. Comparatively, 5.9% of Stryker shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Stryker beats IM Cannabis on 12 of the 14 factors compared between the two stocks.

About IM Cannabis

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel and Germany. It offers cannabis flowers and strain-specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, minis, and full spectrum extracts offerings under the WAGNERS and BLKMKT brands. The company serves medical patients. IM Cannabis Corp. is headquartered in Tel Aviv, Israel.

About Stryker

Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical and thoracolumbar systems that include fixation, minimally invasive and interbody systems used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, clinical communication and workflow solutions, and other medical device products that are used in various medical specialties, as well as patient and caregiver safety technologies. This segment also provides neurosurgical, neurovascular and craniomaxillofacial implant products, which include products used for minimally invasive endovascular procedures; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.