Aurora Cannabis (NYSE:ACB – Get Rating) and Diamond Wellness (OTCMKTS:POTN – Get Rating) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Aurora Cannabis and Diamond Wellness, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aurora Cannabis | 0 | 5 | 1 | 0 | 2.17 |
| Diamond Wellness | 0 | 0 | 0 | 0 | N/A |
Aurora Cannabis presently has a consensus price target of $2.03, indicating a potential upside of 231.97%.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aurora Cannabis | $211.59 million | 1.00 | -$1.36 billion | ($6.04) | -0.10 |
| Diamond Wellness | $9.68 million | 0.00 | -$5.59 million | N/A | N/A |
Diamond Wellness has lower revenue, but higher earnings than Aurora Cannabis.
Institutional and Insider Ownership
14.0% of Aurora Cannabis shares are owned by institutional investors. 0.0% of Aurora Cannabis shares are owned by insiders. Comparatively, 0.2% of Diamond Wellness shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Aurora Cannabis and Diamond Wellness’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aurora Cannabis | -817.07% | -62.73% | -38.13% |
| Diamond Wellness | N/A | N/A | N/A |
Risk & Volatility
Aurora Cannabis has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, Diamond Wellness has a beta of -0.13, meaning that its stock price is 113% less volatile than the S&P 500.
Summary
Diamond Wellness beats Aurora Cannabis on 5 of the 9 factors compared between the two stocks.
About Aurora Cannabis
Aurora Cannabis, Inc. engages in the production, distribution, and sale of cannabis products. It also produces and sells indoor cultivation systems and hemp related food products. The firm operates through the Canadian Cannabis and International Cannabis segments. Aurora Cannabis was founded by Terry Booth and Steve Dobler on December 21, 2006 and is headquartered in Edmonton, Canada.
About Diamond Wellness
Diamond Wellness Holdings Inc., through its subsidiaries, engages in the development and sale of hemp-derived cannabidiol (CBD) oil products. It offers flavored and unflavored oils; vaping pens and additives; edibles, such as chewable gummies and lollipops; capsules; beverage energy/relaxation shots; topical application creams in various concentrations; dog and cat wellness products in various dosages and delivery formats; skin care, bath, and body products; and hemp flowers. The company provides its products under various brands, including Diamond CBD, Chill, Relax, MediPets, and Meds BioTech, as well as various other brands. It sells its products through distributors and resellers, as well as through its Website. The company was formerly known as PotNetwork Holdings, Inc. Diamond Wellness Holdings Inc. is based in Fort Lauderdale, Florida.
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