Aurora Cannabis (NASDAQ:ACB – Get Free Report) and Ayr Wellness (OTCMKTS:AYRWF – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
47.6% of Aurora Cannabis shares are held by institutional investors. Comparatively, 0.9% of Ayr Wellness shares are held by institutional investors. 0.0% of Aurora Cannabis shares are held by insiders. Comparatively, 8.1% of Ayr Wellness shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Aurora Cannabis and Ayr Wellness’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aurora Cannabis | $200.35 million | 1.57 | -$48.62 million | ($1.40) | -4.11 |
| Ayr Wellness | $463.63 million | 0.51 | -$272.43 million | ($2.11) | -0.97 |
Analyst Ratings
This is a summary of recent recommendations and price targets for Aurora Cannabis and Ayr Wellness, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aurora Cannabis | 0 | 0 | 1 | 0 | 3.00 |
| Ayr Wellness | 0 | 0 | 0 | 0 | N/A |
Volatility & Risk
Aurora Cannabis has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Ayr Wellness has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.
Profitability
This table compares Aurora Cannabis and Ayr Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aurora Cannabis | -26.97% | -9.34% | -6.45% |
| Ayr Wellness | -39.55% | -17.27% | -7.01% |
Summary
Aurora Cannabis beats Ayr Wellness on 8 of the 12 factors compared between the two stocks.
About Aurora Cannabis
Aurora Cannabis Inc., together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. It operates through three segments: Canadian Cannabis, European Cannabis, and Plant Propagation. The company produces, distributes, and sells medical and consumer cannabis products in Canada. It is also involved in the distribution of wholesale medical cannabis in the European Union (EU); distribution of wholesale medical cannabis in various international markets, including Australia, the Caribbean, South America, and Israel; supply of propagated vegetables and ornamental plants in North America; and distribution and sale of hemp-derived cannabidiol (CBD) products. In addition, the company cultivates and sells dried cannabis, cannabis oils, capsules, edible cannabis, cannabis extracts, and soft gels, which are ingested in various ways, including smoking, vaporizing, and consumption in the form of oil, capsules, edibles, and extracts; and provides dried flowers, vapes, dried milled strains, strain-specific extracts, strain specific cannabis oils, and concentrates. Further, it offers recreational cannabis products, such as flowers, vapes, ingestibles, concentrates, extracts, and CBD products; and patient counseling and outreach services. The company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being, and Greybeard, as well as CBD brands, Reliva and KG7; and medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, Pedanios, Bidiol, and CraftPlant. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.
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.
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