Reviewing biote (NASDAQ:BTMD) & IM Cannabis (NASDAQ:IMCC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
biote	4.30%	-36.67%	12.50%
IM Cannabis	-28.03%	-75.51%	-24.18%

Insider & Institutional Ownership

21.7% of biote shares are owned by institutional investors. Comparatively, 7.7% of IM Cannabis shares are owned by institutional investors. 13.9% of biote shares are owned by company insiders. Comparatively, 5.9% of IM Cannabis shares are owned 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.

Volatility and Risk

biote has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, IM Cannabis has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Valuation & Earnings

This table compares biote and IM Cannabis’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
biote	$185.36 million	2.62	$3.32 million	$0.11	71.18
IM Cannabis	$36.15 million	0.14	-$7.04 million	($4.80)	-0.46

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
biote	0	0	5	0	3.00
IM Cannabis	0	0	0	0	N/A

biote currently has a consensus price target of $8.11, suggesting a potential upside of 3.58%. Given biote’s higher possible upside, equities research analysts clearly believe biote is more favorable than IM Cannabis.

Summary

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

About biote

biote Corp. operates in practice-building business within the hormone optimization space. It trains physicians and nurse practitioners in hormone optimization using bioidentical hormone replacement pellet therapy in men and women experiencing hormonal imbalance. The company offers Biote Method, a comprehensive end-to-end practice building platform that provides Biote-certified practitioners with the components developed for practitioners in the hormone optimization space comprising Biote Method education, training, and certification services; practice management software that allows Biote-certified practitioners to order, track, and manage hormone optimization product inventory and other administrative requirements; inventory management software to monitor pellet inventory; and information regarding available hormone replacement therapy products, as well as digital and point-of-care marketing support. It also sells dietary supplements under the Biote brand; and sterile pellet insertion kits that is used with hormone optimization therapies for male and female. The company was founded in 2012 and is headquartered in Irving, Texas.

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.