Head to Head Analysis: CannTrust (OTCMKTS:CNTTF) vs. Enanta Pharmaceuticals (NASDAQ:ENTA)

CannTrust (OTCMKTS:CNTTF) and Enanta Pharmaceuticals (NASDAQ:ENTA) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares CannTrust and Enanta Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CannTrust	N/A	N/A	N/A
Enanta Pharmaceuticals	-160.27%	-63.75%	-27.09%

Valuation and Earnings

This table compares CannTrust and Enanta Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CannTrust	$15.96 million	63.54	$7.39 million	$0.07	137.18
Enanta Pharmaceuticals	$71.96 million	2.81	-$133.82 million	($5.45)	-1.75

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

Risk and Volatility

CannTrust has a beta of 4.52, indicating that its stock price is 352% more volatile than the S&P 500. Comparatively, Enanta Pharmaceuticals has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of CannTrust shares are held by institutional investors. Comparatively, 95.0% of Enanta Pharmaceuticals shares are held by institutional investors. 13.6% of Enanta Pharmaceuticals shares are held by company 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 Ratings

This is a breakdown of recent recommendations for CannTrust and Enanta Pharmaceuticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CannTrust	0	0	0	0	0.00
Enanta Pharmaceuticals	1	1	2	1	2.60

Enanta Pharmaceuticals has a consensus price target of $20.00, suggesting a potential upside of 109.86%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Enanta Pharmaceuticals is more favorable than CannTrust.

Summary

CannTrust beats Enanta Pharmaceuticals on 8 of the 15 factors compared between the two stocks.

About CannTrust

CannTrust Holdings Inc. produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. The company has a partnership with Gold Coast University Hospital. CannTrust Holdings Inc. was incorporated in 2015 and is headquartered in Vaughan, Canada.

About Enanta Pharmaceuticals

Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its product pipeline comprises EDP-514, which is in phase 1b clinical development for the treatment of chronic infection with hepatitis B virus or HBV; EDP-938 and EDP-323, which is in phase II clinical development for the treatment of respiratory syncytial virus; EDP-235, which is in phase II clinical development for the treatment of human coronaviruses; and Glecaprevir, which is in the market for the treatment of chronic infection with hepatitis C virus or HCV. The company has a collaborative development and license agreement with Abbott Laboratories to develop, manufacture, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. Enanta Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Watertown, Massachusetts.