Analyzing InMode (NASDAQ:INMD) and SNDL (NASDAQ:SNDL)

InMode (NASDAQ:INMD) and SNDL (NASDAQ:SNDL) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Earnings and Valuation

This table compares InMode and SNDL”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InMode	$370.49 million	2.36	$93.83 million	$1.36	11.18
SNDL	$677.32 million	0.48	-$11.29 million	($0.03)	-42.33

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

Analyst Recommendations

This is a summary of recent recommendations for InMode and SNDL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InMode	1	6	1	0	2.00
SNDL	1	1	1	0	2.00

InMode presently has a consensus target price of $16.00, indicating a potential upside of 5.26%. SNDL has a consensus target price of $5.00, indicating a potential upside of 293.70%. Given SNDL’s higher possible upside, analysts clearly believe SNDL is more favorable than InMode.

Risk and Volatility

InMode has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500. Comparatively, SNDL has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares InMode and SNDL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InMode	23.27%	13.47%	11.95%
SNDL	-1.19%	-1.02%	-0.85%

Institutional and Insider Ownership

68.0% of InMode shares are held by institutional investors. 6.9% of InMode 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.

Summary

InMode beats SNDL on 10 of the 12 factors compared between the two stocks.

About InMode

InMode Ltd. designs, develops, manufactures, and markets minimally invasive aesthetic medical products based on its proprietary radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency technologies in the United States and internationally. The company offers minimally invasive aesthetic medical products for various procedures, such as liposuction with simultaneous skin tightening, body and face contouring, and ablative skin rejuvenation treatments, as well as for use in women's health conditions and procedures. It also designs, develops, manufactures, and markets non-invasive medical aesthetic products that target an array of procedures, including permanent hair reduction, facial skin rejuvenation, wrinkle reduction, cellulite treatment, skin appearance and texture, and superficial benign vascular and pigmented lesions, as well as hands-free medical aesthetic products that target a range of procedures, such as skin tightening, fat reduction, and muscle stimulation. The company was formerly known as Invasix Ltd. and changed its name to InMode Ltd. in November 2017. InMode Ltd. was incorporated in 2008 and is headquartered in Yokneam, Israel.

About SNDL

SNDL Inc. engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores. In addition, the company produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands. The company was formerly known as Sundial Growers Inc. and changed its name to SNDL Inc. in July 2022. SNDL Inc. was incorporated in 2006 and is headquartered in Calgary, Canada.