Canopy Growth (NYSE:CGC) and True Drinks (OTCMKTS:TRUU) are both medical companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
13.5% of Canopy Growth shares are held by institutional investors. 18.2% of True Drinks shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.Earnings & Valuation
This table compares Canopy Growth and True Drinks’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Canopy Growth||$60.79 million||178.58||-$54.88 million||($0.32)||-146.13|
|True Drinks||$3.82 million||0.17||-$12.44 million||N/A||N/A|
True Drinks has lower revenue, but higher earnings than Canopy Growth.
Volatility & Risk
Canopy Growth has a beta of 4.46, suggesting that its stock price is 346% more volatile than the S&P 500. Comparatively, True Drinks has a beta of 4.75, suggesting that its stock price is 375% more volatile than the S&P 500.
This table compares Canopy Growth and True Drinks’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Canopy Growth and True Drinks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Canopy Growth currently has a consensus price target of $55.76, indicating a potential upside of 19.24%. Given Canopy Growth’s higher possible upside, equities research analysts plainly believe Canopy Growth is more favorable than True Drinks.
Canopy Growth beats True Drinks on 6 of the 11 factors compared between the two stocks.
About Canopy Growth
Canopy Growth Corp. engages in the production and sale of medical cannabis. The company offers products including oils and concentrates, soft gel capsules, and hemp. It focuses on the treatment of chronic pain, seizures, muscle spasms, nausea, and loss of appetite. The company was founded by Bruce Linton on August 5, 2009 and is headquartered in Smith Falls, Canada.
About True Drinks
True Drinks Holdings, Inc. develops, markets, sells, and distributes naturally flavored water in the United States. The company offers AquaBall Naturally Flavored Water, a zero-sugar, zero-calorie, preservative-free, vitamin-enhanced, and naturally flavored water drink. It also markets and distributes Bazi All Natural Energy, a liquid nutritional supplement drink. True Drinks Holdings, Inc. distributes its products through various retail channels, such as grocery and convenience stores, mass merchandisers, and drug stores, as well as through its e-commerce platform. The company was formerly known as True Drinks, Inc. and changed its name to True Drinks Holdings, Inc. in October 2012. True Drinks Holdings, Inc. was founded in 2008 and is headquartered in Irvine, California.
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