Analyzing True Drinks (TRUU) & Canopy Growth (CGC)

13.5% of Canopy Growth shares are held by institutional investors. 18.2% of True Drinks shares are held by company insiders. Strong institutional …

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.

Profitability

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
Canopy Growth -267.40% -14.39% -11.12%
True Drinks N/A N/A -236.18%

Analyst Ratings

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 0 4 4 0 2.50
True Drinks 0 0 0 0 N/A

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.

Summary

Canopy Growth beats True Drinks on 6 of the 11 factors compared between the two stocks.

About Canopy Growth

Canopy Growth logoCanopy 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 logoTrue 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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Canopy lays off nearly half of staff

The company received $42 million in funding last May from Tenaya Capital and Nyca Partners, on top of $30 million in earlier funding led by New …

Canopy, a fast-growing practice management and tax software company, laid off over 40 percent of its staff over the weekend.

Before the layoffs, Canopy had been expanding rapidly, and many employees were caught off guard by the sudden layoffs. Canopy has been planning to release a professional tax preparation system, which it began beta testing earlier this year with hopes of launching it in time for next tax season (see Canopy to begin beta testing professional tax prep software). It recently moved into larger headquarters in Levi, Utah, after receiving a grant from the governor’s economic development office and announced plans to double the size of its workforce over the next four years.

Canopy was founded by Kurt Avarell in 2014. He left a career as a Wall Street tax attorney to launch the company, which used to be called Canopy Tax, from his basement. In recent years, the company has rapidly developed a cloud-based practice management system for tax firms, in addition to software for handling tax transcripts. tax notices, and tax resolution management.

“I have personally invested from Day 1 in building a company in which our customers, partners, employees and investors can be proud,” Avarell said in a statement emailed Monday to Accounting Today. “We’re poised for continued growth as we develop solutions to equip the category to tackle key challenges. Unfortunately, this journey now includes the hard decision to part ways with valued team members as we implement the high level of focus and precision needed in the next phase of Canopy’s growth trajectory. I thank each and every team member for their contribution and dedication to the company. Each of these individuals is among the best in their fields, and brought significant vision and strong execution to Canopy during their time here. In fact, as a testament to their talent and to the supportive tech community here in Utah, a free networking breakfast on [March 13] has been set up featuring more than 30 of the region’s top employers to help affected Canopy employees find their next opportunity. Moving ahead, we commit to building on the great foundation put in place by the Canopy team with the support of our investors and partners.”

Founder and CEO of Canopy Kurt Avarell
Founder and CEO of Canopy Kurt Avarell

Canopy is still moving forward with its product development plans, according to spokesperson Andrew Jones: “There will not be any anticipated delay in releasing and enhancing Canopy’s upcoming product offerings.”

In January, when Canopy moved to its new offices, the company touted the advantages of the much larger space. It took over three of the five floors in a newly built corporate space with nearly 80,000 square feet. The building offered employees basketball and pickleball courts, a gym, a library, stocked kitchens, barbecue grills and a smoker, along with maternity/paternity rooms.

Recent social media posts on LinkedIn and Glassdoor suggested that that spending may have contributed to the retrenchment.

“It was very clear that the allocation of money was way out of proportion,” wrote one former employee on Glassdoor. “So many jobs could have been spared had we made better use of the funding we’d been given. It seems that some decisions were extremely rash. Having to lay off 40 percent of the company is not something that should have been decided in two days, but should have been forecasted for months. I gave Canopy my heart and soul and was left with little explanation and absolutely no apology from my managers.”

A current employee was more optimistic about the company’s growth prospects. “It was either layoffs now and focus on fixing core problems and extending the runway long enough to do it or betting all of our jobs on a short-term goal that, if missed, would have meant everyone losing their jobs,” the employee wrote on Glassdoor. “I appreciate the hard decision you made. To those who got let go, my heart goes out. Those of us who stay will do what we can to help you land on your feet. To those who see a big new building and positive press recently, the building and the press was in place before any of this happened. From my understanding the models for why layoffs happened were only fully realized last week. It’s not a reflection of the leadership or the company, but simply the velocity. We were moving too fast and we needed to pump the [brakes]. The future for Canopy is still incredibly bright.”

On LinkedIn, Ted Ferrin, the CEO and co-founder of financial reporting technology company Rivet Software, wrote a post over the weekend encouraging employers to hire the newly laid-off employees. “It’s clear there will be a large recruiting market for Canopy’s talent who is looking for the next job, but nobody knows who is now looking: Please tag anyone as a reply to this particular comment who is looking and fair game,” he wrote. To the company’s current employees, he also encouraged them to stick with it. “To those staying at Canopy, the party isn’t over,” he wrote. “Canopy is in a gigantic market with low/no competition from innovators. Give this 1-2 years of execution and you’ll be back on top.”

Canopy received $42 million in funding last May from Tenaya Capital and Nyca Partners, on top of $30 million in earlier funding led by New Enterprise Associates, along with Wells Fargo Strategic Capital, Pelion Ventures, University Growth Fund and EPIC Venture (see Canopy receives $42M in funding).

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Canopy Growth Corporation (NYSE:CGC) Shorted Shares Declined By 3.27%

It was noted a decrease on Canopy Growth Corporation (NYSE:CGC)’s shares shorted with 3.27%. In March was issued CGC’s total 21.28M shares …

It was noted a decrease on Canopy Growth Corporation (NYSE:CGC)’s shares shorted with 3.27%. In March was issued CGC’s total 21.28M shares shorted by FINRA. Previously was reported down change of 3.27% from 22.00M shares. Former CGC’s position will need 2 days to recover. It has 11.09 million average volume. Float short on Canopy Growth Corporation is 43.03%.

The stock decreased 2.31% or $1.07 during the last trading session, reaching $45.07.Canopy Growth Corporation has volume of 3.45 million shares. Since March 7, 2018 CGC has risen 100.43% and is uptrending. CGC outperformed the S&P 500 by 96.06%.

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada.The company has $15.33 billion market cap. The Company’s products include dried flowers, oils and concentrates, softgel capsules, and hemps.Last it reported negative earnings. The firm offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names.

For more Canopy Growth Corporation (NYSE:CGC) news released recently go to: Benzinga.com, Seekingalpha.com, Fool.com, Globenewswire.com or Seekingalpha.com. The titles are as follows: “Canopy Growth Corp (NYSE:CGC), Tilray Inc (NASDAQ:TLRY) – February Hemp Report – Benzinga” released on March 01, 2019, “Canopy Growth: Sell Before Legalization On October 17th – Seeking Alpha” on October 16, 2018, “Why Marijuana Stocks Canopy Growth, Aurora Cannabis, and Aphria Slumped Today – Motley Fool” with a publish date: February 11, 2019, “Analysis: Positioning to Benefit within Canopy Growth, Procter & Gamble, Hercules Capital, On Deck Capital, Ball, and Sun Life Financial — Research Highlights Growth, Revenue, and Consolidated Results – GlobeNewswire” and the last “Canopy’s Moat: Powered By ebbu – Seeking Alpha” with publication date: February 06, 2019.

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Analyst at Jefferies Maintained The Canopy Growth Corp (CGC) “Hold” Rating They’ve Had

The rating of Canopy Growth Corp (CGC) shares were restate by investment analysts at Jefferies. This was revealed in a report on Monday, 4 March.

Canopy Growth Corp (CGC) Rating Reaffirmed

The rating of Canopy Growth Corp (CGC) shares were restate by investment analysts at Jefferies. This was revealed in a report on Monday, 4 March.

Canopy Growth Corporation (NYSE:CGC) Ratings Coverage

Among 3 analysts covering Canopy Growth (CGC), 3 have Buy rating, 0 Sell and 0 Hold. Therefore 100% are positive. Canopy Growth has $60 highest and $40 lowest target. $60’s average target is 27.31% above currents $47.13 stock price. Canopy Growth had 10 analyst reports since September 25, 2018 according to SRatingsIntel. The firm has “Overweight” rating given on Friday, January 25 by PiperJaffray.

The stock increased 0.71% or $0.33 during the last trading session, reaching $47.13. About 2.29 million shares traded. Canopy Growth Corporation (CGC) has risen 100.43% since March 5, 2018 and is uptrending. It has outperformed by 96.06% the S&P500.

Analysts await Canopy Growth Corporation (NYSE:CGC) to report earnings on June, 26. They expect $-0.19 earnings per share, down 90.00 % or $0.09 from last year’s $-0.1 per share. After $-0.67 actual earnings per share reported by Canopy Growth Corporation for the previous quarter, Wall Street now forecasts -71.64 % EPS growth.

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. The company has market cap of $16.03 billion. The Company’s products include dried flowers, oils and concentrates, softgel capsules, and hemps. It currently has negative earnings. The firm offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names.

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More notable recent Canopy Growth Corporation (NYSE:CGC) news were published by: Seekingalpha.com which released: “Canopy Growth, Constellation Brands, And Irrational Exuberance – Seeking Alpha” on October 18, 2018, also Seekingalpha.com with their article: “Aurora replaces Canopy Growth as top cannabis pick at Cowen – Seeking Alpha” published on March 05, 2019, Fool.com published: “9 Pot Stocks Currently Listed on the NYSE or Nasdaq – The Motley Fool” on March 03, 2019. More interesting news about Canopy Growth Corporation (NYSE:CGC) were released by: Seekingalpha.com and their article: “CAGNY wrapups on Coca-Cola, Altria and Constellation Brands – Seeking Alpha” published on February 23, 2019 as well as Seekingalpha.com‘s news article titled: “Canopy Growth Decisions That Could Cost It Long-Term Market Leadership – Seeking Alpha” with publication date: November 07, 2018.

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Canopy Growth (WEED) – Investment Analysts’ Recent Ratings Changes

2/25/2019 – Canopy Growth had its “hold” rating reaffirmed by analysts at Jefferies Financial Group Inc. They now have a C$64.00 price target on the …

Canopy Growth logoSeveral brokerages have updated their recommendations and price targets on shares of Canopy Growth (TSE: WEED) in the last few weeks:

  • 2/25/2019 – Canopy Growth had its “hold” rating reaffirmed by analysts at Jefferies Financial Group Inc. They now have a C$64.00 price target on the stock.
  • 2/19/2019 – Canopy Growth had its price target raised by analysts at Canaccord Genuity from C$50.00 to C$70.00. They now have a “speculative buy” rating on the stock.
  • 2/19/2019 – Canopy Growth had its price target raised by analysts at Pi Financial from C$60.00 to C$70.00.
  • 2/19/2019 – Canopy Growth had its price target raised by analysts at CIBC from C$65.00 to C$75.00.
  • 1/18/2019 – Canopy Growth had its “outperform” rating reaffirmed by analysts at CIBC. They now have a C$65.00 price target on the stock.

Canopy Growth stock opened at C$62.53 on Monday. The company has a debt-to-equity ratio of 10.66, a quick ratio of 17.01 and a current ratio of 17.85. The company has a market cap of $21.45 billion and a P/E ratio of -34.89. Canopy Growth Corp has a 1-year low of C$23.88 and a 1-year high of C$76.68.

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names.

Recommended Story: Marijuana Stocks

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