Ayr Wellness (OTCMKTS:AYRWF) and Sanuwave Health (NASDAQ:SNWV) Financial Analysis

Ayr Wellness (OTCMKTS:AYRWF) and Sanuwave Health (NASDAQ:SNWV) are both small-cap medical companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Earnings and Valuation

This table compares Ayr Wellness and Sanuwave Health”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ayr Wellness	$463.63 million	0.00	-$359.31 million	($2.67)	-0.01
Sanuwave Health	$44.05 million	3.65	$11.81 million	($0.16)	-116.88

Sanuwave Health has lower revenue, but higher earnings than Ayr Wellness. Sanuwave Health is trading at a lower price-to-earnings ratio than Ayr Wellness, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ayr Wellness and Sanuwave Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ayr Wellness	N/A	N/A	N/A
Sanuwave Health	26.64%	-141.56%	34.53%

Institutional & Insider Ownership

0.9% of Ayr Wellness shares are owned by institutional investors. Comparatively, 42.5% of Sanuwave Health shares are owned by institutional investors. 8.1% of Ayr Wellness shares are owned by company insiders. Comparatively, 14.9% of Sanuwave Health shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Ayr Wellness has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Sanuwave Health has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Ayr Wellness and Sanuwave Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ayr Wellness	0	0	0	0	0.00
Sanuwave Health	1	1	1	1	2.50

Sanuwave Health has a consensus price target of $51.00, indicating a potential upside of 172.73%. Given Sanuwave Health’s stronger consensus rating and higher probable upside, analysts clearly believe Sanuwave Health is more favorable than Ayr Wellness.

Summary

Sanuwave Health beats Ayr Wellness on 11 of the 15 factors compared between the two stocks.

About Ayr Wellness

Ayr Wellness Inc. operates as a vertically-integrated multi-state cannabis operator that cultivates, manufactures, and retails cannabis products and branded cannabis packaged goods. It owns and operates a chain of cannabis retail stores under AYR, Liberty Health Sciences, and The Dispensary brand names. The company was formerly known as Ayr Strategies Inc. and changed its name to Ayr Wellness Inc. in February 2021. Ayr Wellness Inc. was incorporated in 2017 and is headquartered in Miami, Florida.

About Sanuwave Health

SANUWAVE Health, Inc., a shock wave technology company, researches, develops, and commercializes noninvasive, high-energy, and acoustic shock waves for regenerative medicine and other applications in the United States and internationally. Its shockwaves are used to produce a biological response resulting in the body healing itself through the repair and regeneration of tissue, and musculoskeletal and vascular structures. The company’s lead regenerative product is the dermaPACE device for treating diabetic foot ulcers. Its portfolio of healthcare products and product candidates activate biologic signaling and angiogenic responses, including new vascularization and microcirculatory improvement, which helps to restore the body’s normal healing processes and regeneration. The company also focuses on applying its Pulsed Acoustic Cellular Expression technology in wound healing, orthopedic, plastic/cosmetic, and cardiac conditions. In addition, it offers UltraMIST, non-contact and non-thermal ultrasound therapy device used to treat diabetic foot ulcers, pressure ulcers, venous leg ulcers, deep tissue pressure injuries, and surgical wounds; and orthoPACE system to treat tendinopathies and acute and nonunion fractures. The company was founded in 2005 and is headquartered in Suwanee, Georgia.