Reviewing Tilray (NASDAQ:TLRY) and IM Cannabis (NASDAQ:IMCC)

IM Cannabis (NASDAQ:IMCC) and Tilray (NASDAQ:TLRY) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

7.7% of IM Cannabis shares are held by institutional investors. Comparatively, 9.4% of Tilray shares are held by institutional investors. 5.9% of IM Cannabis shares are held by company insiders. Comparatively, 0.7% of Tilray shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares IM Cannabis and Tilray’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IM Cannabis	-28.03%	-75.51%	-24.18%
Tilray	-43.98%	-2.68%	-2.09%

Earnings and Valuation

This table compares IM Cannabis and Tilray’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IM Cannabis	$36.15 million	0.18	-$7.04 million	($0.80)	-0.60
Tilray	$627.12 million	2.05	-$1.45 billion	($0.44)	-3.77

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

Volatility and Risk

IM Cannabis has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, Tilray has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for IM Cannabis and Tilray, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	0	0	0	0	N/A
Tilray	0	3	1	0	2.25

Tilray has a consensus price target of $2.71, indicating a potential upside of 63.15%. Given Tilray’s higher possible upside, analysts clearly believe Tilray is more favorable than IM Cannabis.

Summary

Tilray beats IM Cannabis on 9 of the 13 factors compared between the two stocks.

About IM Cannabis

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel and Germany. It offers cannabis flowers and strain-specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, minis, and full spectrum extracts offerings under the WAGNERS and BLKMKT brands. The company serves medical patients. IM Cannabis Corp. is headquartered in Tel Aviv, Israel.

About Tilray

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Nanaimo, Canada.