Neogen (NASDAQ:NEOG) versus Aurora Cannabis (NASDAQ:ACB) Head to Head Review

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

Analyst Ratings

This is a summary of current recommendations for Aurora Cannabis and Neogen, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aurora Cannabis	1	1	1	0	2.00
Neogen	1	3	2	0	2.17

Neogen has a consensus target price of $10.67, suggesting a potential downside of 7.49%. Given Neogen’s stronger consensus rating and higher probable upside, analysts clearly believe Neogen is more favorable than Aurora Cannabis.

Institutional and Insider Ownership

47.6% of Aurora Cannabis shares are held by institutional investors. Comparatively, 96.7% of Neogen shares are held by institutional investors. 0.0% of Aurora Cannabis shares are held by company insiders. Comparatively, 0.5% of Neogen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Aurora Cannabis has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Neogen has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aurora Cannabis	-33.57%	0.10%	0.07%
Neogen	-69.93%	2.35%	1.46%

Earnings and Valuation

This table compares Aurora Cannabis and Neogen”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aurora Cannabis	$247.82 million	0.70	-$88.13 million	($1.56)	-1.81
Neogen	$870.56 million	2.88	-$1.09 billion	($2.80)	-4.12

Aurora Cannabis has higher earnings, but lower revenue than Neogen. Neogen is trading at a lower price-to-earnings ratio than Aurora Cannabis, indicating that it is currently the more affordable of the two stocks.

Summary

Neogen beats Aurora Cannabis on 10 of the 14 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 Neogen

Neogen Corporation, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety worldwide. It operates through two segments, Food Safety and Animal Safety. The Food Safety segment offers diagnostic test kits and related products to detect dangerous and unintended substances in food and animal feed, including foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues, and general sanitation concerns; and AccuPoint Advanced rapid sanitation test to detect the presence of adenosine triphosphate, a chemical found in living cells, as well as provides genomics-based diagnostic technology and software systems that help testers to objectively analyze and store their results and perform analysis on the results from multiple locations over extended periods. The segment offers its products primarily to milling and grain, meat and poultry, prepared foods and ingredients, fruits and vegetables, seafood, dairy, beverage, water, healthcare, traditional culture media markets, food service, and dietary supplements markets. The Animal Safety segment provides veterinary instruments, pharmaceuticals, vaccines, topicals, parasiticides, diagnostic products, rodent control products, cleaners, disinfectants, insect control products, and genomics testing services marketed through veterinarians, retailers, livestock producers, and animal health product distributors, for the animal safety market. The segment offers its products for companion animal veterinarians; livestock producers, veterinarians, and breed associations; retailers; breeding and genetics companies; diagnostic labs and universities; distributors; and other manufacturers and government agencies. Neogen Corporation was incorporated in 1981 and is headquartered in Lansing, Michigan.