Head to Head Contrast: IM Cannabis (NASDAQ:IMCC) & TerrAscend (OTCMKTS:TSNDF)

TerrAscend (OTCMKTS:TSNDF) and IM Cannabis (NASDAQ:IMCC) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-42.72%	-18.32%	-4.36%
IM Cannabis	-9.47%	-134.35%	-11.66%

Insider & Institutional Ownership

5.8% of TerrAscend shares are held by institutional investors. Comparatively, 7.7% of IM Cannabis shares are held by institutional investors. 32.2% of TerrAscend shares are held by company insiders. Comparatively, 5.9% of IM Cannabis shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares TerrAscend and IM Cannabis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TerrAscend	$306.68 million	0.59	-$80.23 million	($0.41)	-1.44
IM Cannabis	$39.44 million	0.16	-$7.72 million	($0.78)	-1.40

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

Risk & Volatility

TerrAscend has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, IM Cannabis has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TerrAscend and IM Cannabis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	2	3.33
IM Cannabis	1	0	0	0	1.00

Summary

TerrAscend beats IM Cannabis on 8 of the 13 factors compared between the two stocks.

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.

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.