Cyanotech (NASDAQ:CYAN) and Aurora Cannabis (NYSE:ACB) are both medical companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

Cyanotech has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Aurora Cannabis has a beta of 2.82, suggesting that its stock price is 182% more volatile than the S&P 500.

Profitability

This table compares Cyanotech and Aurora Cannabis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cyanotech -9.87% -18.96% -10.78%
Aurora Cannabis -122.65% 1.24% 1.05%

Valuation & Earnings

This table compares Cyanotech and Aurora Cannabis’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cyanotech $34.12 million 0.54 $1.02 million N/A N/A
Aurora Cannabis $43.49 million 201.93 $56.66 million $0.12 72.17

Aurora Cannabis has higher revenue and earnings than Cyanotech.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cyanotech and Aurora Cannabis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cyanotech 0 0 0 0 N/A
Aurora Cannabis 0 1 5 0 2.83

Aurora Cannabis has a consensus target price of $9.86, suggesting a potential upside of 13.82%. Given Aurora Cannabis’ higher probable upside, analysts plainly believe Aurora Cannabis is more favorable than Cyanotech.

Institutional & Insider Ownership

13.3% of Cyanotech shares are held by institutional investors. Comparatively, 8.4% of Aurora Cannabis shares are held by institutional investors. 24.5% of Cyanotech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Aurora Cannabis beats Cyanotech on 8 of the 11 factors compared between the two stocks.

Cyanotech Company Profile

Cyanotech Corporation engages in the cultivation, production, and sale of natural products derived from microalgae for the health and human nutrition markets worldwide. The company's products include Hawaiian BioAstin natural astaxanthin, a dietary antioxidant, which is used as a human nutraceutical and functional food ingredient to support and maintain the body's natural inflammatory response, enhance skin, and support eye and joint health; and Hawaiian Spirulina Pacifica, a nutrient-rich dietary supplement that is used for extra energy, a strengthened immune system, cardiovascular benefits, and as a source of antioxidant carotenoids. Cyanotech Corporation sells its products as packaged consumer products through distributors, retailers, and online channels, as well as directly to consumers; and in bulk quantities to manufacturers, formulators, and distributors. The company was founded in 1983 and is headquartered in Kailua-Kona, Hawaii.

Aurora Cannabis Company Profile

Aurora Cannabis Inc. produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution. The company's products consist of dried cannabis and cannabis oil; CanniMed vegan capsules; and hemp products, as well as sells vaporizers, consumable vaporizer accessories, and herb mills for using herbal cannabis products. It also operates CanvasRX, a network of cannabis counseling and outreach centers; and provides cannabis analytical product testing services. As of February 26, 2019, the company had operations in 24 countries across five continents. Aurora Cannabis Inc. has collaboration agreements with PharmaChoice, Pharmasave, and Shoppers Drug Mart for the distribution, sale, and marketing of medical cannabis products through their respective networks of pharmacies. The company has a strategic agreements with Hempco Food and Fiber Inc.; CTT Pharmaceuticals Inc.; Choom Holdings Inc.; Capcium Inc.; The Green Organic Dutchman Holdings Ltd.; Société des Alcools du Québec; Alcanna; Radient Technologies; Micron Waste; Wagner Dimas; Evio; and Cann Group Limited. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

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