Comparing Newron Pharmaceuticals (OTCMKTS:NWPHF) and Flora Growth (NASDAQ:FLGC)

Flora Growth (NASDAQ:FLGC) and Newron Pharmaceuticals (OTCMKTS:NWPHF) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of current ratings and price targets for Flora Growth and Newron Pharmaceuticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flora Growth	0	1	1	0	2.50
Newron Pharmaceuticals	0	0	0	0	N/A

Flora Growth currently has a consensus price target of $6.00, suggesting a potential upside of 252.94%. Given Flora Growth’s higher possible upside, equities research analysts plainly believe Flora Growth is more favorable than Newron Pharmaceuticals.

Profitability

This table compares Flora Growth and Newron Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flora Growth	-21.56%	-161.06%	-45.47%
Newron Pharmaceuticals	N/A	N/A	N/A

Insider and Institutional Ownership

36.0% of Flora Growth shares are held by institutional investors. 13.0% of Flora Growth shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Flora Growth and Newron Pharmaceuticals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flora Growth	$69.01 million	0.33	-$57.04 million	N/A	N/A
Newron Pharmaceuticals	$6.82 million	24.50	-$17.63 million	N/A	N/A

Newron Pharmaceuticals has lower revenue, but higher earnings than Flora Growth.

Volatility and Risk

Flora Growth has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Newron Pharmaceuticals has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Summary

Flora Growth beats Newron Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Flora Growth

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.

About Newron Pharmaceuticals

Newron Pharmaceuticals S.p.A., a biopharmaceutical company, focus on the development of novel therapies for the treatment of central nervous system (CNS) and pain in Italy and the United States. It offers Xadago (safinamide), a chemical entity for the treatment of Parkinson's in the European Union, Switzerland, the United Kingdom, the United States of America, Australia, Canada, Latin America, Israel, the United Arab Emirates, Japan, and South Korea. The company's product pipeline includes Evenamide, an add-on therapy for the treatment of Schizophrenia and treatment-resistant schizophrenia, which is in Phase III clinical trial; and Ralfinamide for the treatment of rare neuropathic pain indication. In addition, it has a strategic partnership with Zambon for the commercialization of safinamide; and license agreement with Meiji Seika Pharma Co., Ltd., for research, develop, manufacture, and marketing of safinamide. The company was founded in 1999 and is headquartered in Bresso, Italy.