Aurora Cannabis (NASDAQ:ACB – Get Free Report) and Lantheus (NASDAQ:LNTH – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Profitability
This table compares Aurora Cannabis and Lantheus’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Aurora Cannabis | -5.66% | -1.49% | -1.06% |
Lantheus | 17.82% | 34.06% | 19.10% |
Insider and Institutional Ownership
47.6% of Aurora Cannabis shares are owned by institutional investors. Comparatively, 99.1% of Lantheus shares are owned by institutional investors. 0.0% of Aurora Cannabis shares are owned by insiders. Comparatively, 1.5% of Lantheus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Aurora Cannabis | $246.72 million | 1.23 | $1.63 million | ($0.19) | -28.37 |
Lantheus | $1.53 billion | 2.41 | $312.44 million | $3.76 | 14.49 |
Lantheus has higher revenue and earnings than Aurora Cannabis. Aurora Cannabis is trading at a lower price-to-earnings ratio than Lantheus, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Aurora Cannabis has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Lantheus has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for Aurora Cannabis and Lantheus, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Aurora Cannabis | 0 | 0 | 1 | 2 | 3.67 |
Lantheus | 0 | 2 | 5 | 0 | 2.71 |
Lantheus has a consensus target price of $105.50, indicating a potential upside of 93.68%. Given Lantheus’ higher probable upside, analysts clearly believe Lantheus is more favorable than Aurora Cannabis.
Summary
Lantheus beats Aurora Cannabis on 12 of the 15 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 Lantheus
Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide. It provides DEFINITY, an injectable ultrasound enhancing agent used in echocardiography exams; TechneLite, a technetium generator for nuclear medicine procedures; Xenon-133, a radiopharmaceutical gas to assess pulmonary function; Neurolite, an injectable imaging agent to identify the area within the brain where blood flow has been blocked or reduced due to stroke; Cardiolite, an injectable Tc-99m-labeled imaging agent to assess blood flow to the muscle of the heart; and PYLARIFY, an F 18-labelled PSMA-targeted PET imaging agent used for imaging of PSMA positive-lesions in men with prostate cancer. The company also offers Automated Bone Scan Index that calculates the disease burden of prostate cancer by detecting and classifying bone scan tracer uptakes as metastatic or benign lesions using an artificial neural network; RELISTOR for opioid-induced constipation; and aPROMISE, an artificial intelligence medical device software; and PYLARIFY AI, an AI-based medical device software to perform quantitative assessment of PSMA PET/CT images in prostate cancer. In addition, it develops 1095, a PSMA-targeted iodine-131-labeled small molecule; PNT2002, a radiopharmaceutical therapy to treat mCRPC; PNT2003, an SSTR therapy that treats patients with SSTR-positive neuroendocrine tumors; MK-6240, a F 18-labeled PET imaging agent that targets Tau tangles in Alzheimer’s disease; LNTH-1363S, an fibroblast activation protein, alpha targeted, copper-64 labeled PET imaging agent; and flurpiridaz used to assess blood flow to the heart;. It has collaboration agreements with GE Healthcare; NanoMab Technology Limited; Curium; RefleXion Medical, Inc.; POINT; Regeneron Pharmaceuticals, Inc; and Ratio Therapeutics LLC. The company was founded in 1956 and is based in Bedford, Massachusetts.
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