Rockwell Medical (NASDAQ:RMTI – Get Rating) and Auxly Cannabis Group (OTCMKTS:CBWTF – Get Rating) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Profitability
This table compares Rockwell Medical and Auxly Cannabis Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rockwell Medical | -17.38% | -84.33% | -26.48% |
| Auxly Cannabis Group | -105.72% | -52.44% | -18.33% |
Institutional & Insider Ownership
27.6% of Rockwell Medical shares are owned by institutional investors. Comparatively, 0.0% of Auxly Cannabis Group shares are owned by institutional investors. 2.2% of Rockwell Medical shares are owned by insiders. Comparatively, 4.6% of Auxly Cannabis Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rockwell Medical | 0 | 0 | 1 | 0 | 3.00 |
| Auxly Cannabis Group | 0 | 1 | 1 | 0 | 2.50 |
Rockwell Medical presently has a consensus target price of $9.00, suggesting a potential upside of 97.37%. Given Rockwell Medical’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Rockwell Medical is more favorable than Auxly Cannabis Group.
Risk and Volatility
Rockwell Medical has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Auxly Cannabis Group has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Valuation and Earnings
This table compares Rockwell Medical and Auxly Cannabis Group’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rockwell Medical | $72.81 million | 0.86 | -$18.68 million | ($1.26) | -3.62 |
| Auxly Cannabis Group | $72.67 million | 0.15 | -$100.22 million | ($0.09) | -0.12 |
Rockwell Medical has higher revenue and earnings than Auxly Cannabis Group. Rockwell Medical is trading at a lower price-to-earnings ratio than Auxly Cannabis Group, indicating that it is currently the more affordable of the two stocks.
Summary
Rockwell Medical beats Auxly Cannabis Group on 8 of the 13 factors compared between the two stocks.
About Rockwell Medical
Rockwell Medical, Inc., together with its subsidiaries, operates as a healthcare company that engages in the development, manufacture, commercialization, and distribution of various hemodialysis products for dialysis providers worldwide. The company offers Triferic Dialysate and Triferic AVNU which are indicated to maintain hemoglobin in patients undergoing hemodialysis. It also manufactures, sells, delivers, and distributes hemodialysis concentrates, such as CitraPure citric acid concentrate, Dri-Sate dry acid concentrate, RenalPure liquid acid concentrate, dry acid concentrate mixer, and RenalPure and SteriLyte powder bicarbonate concentrate; and ancillary products, including cleaning agents, 6% bleach for disinfection, citric acid descale, filtration salts, and other supplies used by hemodialysis providers. The company's dialysis concentrate products are used to maintain human life by removing toxins and replacing critical nutrients in the dialysis patient's bloodstream. It is also developing other therapeutic product candidates for the treatment of hospitalized patients with acute heart failure; and home infusion therapy that allows patients to receive intravenous medications at home. Its target customers include medium and small sized dialysis chains and independent dialysis centers. Rockwell Medical, Inc. was incorporated in 1996 and is headquartered in Wixom, Michigan.
About Auxly Cannabis Group
Auxly Cannabis Group Inc. operates as a consumer-packaged goods company in the cannabis products market in Canada. The company focuses on developing, manufacturing, and distributing cannabis products for wellness and recreational consumers. It offers cannabis products under various forms, including vape catridges, infused pre-rolls, vape pens, milled and dried flower, concentrates, chocolates, soft chews, oil drops, capsules, and topicals under the brands KOLAB PROJECT, Dosecann, BACK FORTY, and Foray. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. Auxly Cannabis Group Inc. was incorporated in 1987 and is headquartered in Toronto, Canada.
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