Critical Contrast: Canopy Growth (NYSE:CGC) & Foamix Pharmaceuticals (FOMX)

Foamix Pharmaceuticals (NASDAQ:FOMX) and Canopy Growth (NYSE:CGC) are both medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Valuation and Earnings

This table compares Foamix Pharmaceuticals and Canopy Growth’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Foamix Pharmaceuticals $3.60 million 36.89 -$74.16 million ($1.70) -1.44
Canopy Growth $60.79 million 238.79 -$54.88 million ($0.32) -131.81

Canopy Growth has higher revenue and earnings than Foamix Pharmaceuticals. Canopy Growth is trading at a lower price-to-earnings ratio than Foamix Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

56.7% of Foamix Pharmaceuticals shares are held by institutional investors. Comparatively, 8.1% of Canopy Growth shares are held by institutional investors. 3.0% of Foamix 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.

Risk & Volatility

Foamix Pharmaceuticals has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 4.17, suggesting that its stock price is 317% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Foamix Pharmaceuticals and Canopy Growth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Foamix Pharmaceuticals 0 0 4 0 3.00
Canopy Growth 0 3 8 0 2.73

Foamix Pharmaceuticals presently has a consensus price target of $17.00, indicating a potential upside of 596.72%. Canopy Growth has a consensus price target of $64.82, indicating a potential upside of 53.67%. Given Foamix Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Foamix Pharmaceuticals is more favorable than Canopy Growth.

Profitability

This table compares Foamix Pharmaceuticals and Canopy Growth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Foamix Pharmaceuticals -2,115.11% -79.46% -68.80%
Canopy Growth -267.40% -14.39% -11.12%

Summary

Canopy Growth beats Foamix Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

Foamix Pharmaceuticals Company Profile

Foamix Pharmaceuticals Ltd., a late clinical-stage specialty pharmaceutical company, develops and commercializes foam-based formulations for dermatological therapy in the United States, France, Denmark, and Germany. Its lead product candidates include FMX101, a novel topical foam formulation of the antibiotic minocycline that has completed third pivotal Phase III clinical trial for the treatment of moderate-to-severe acne; and FMX103, which is in Phase III clinical trial for the treatment of moderate-to-severe papulopustular rosacea. The company's product pipeline includes FCD105 and FMX109 for the treatment of moderate-to-severe acne vulgaris; and FMX110 for the treatment of papulopustular rosacea. Foamix Pharmaceuticals Ltd. has development and license agreements with Bayer HealthCare AG; LEO Pharma A/S; Mylan N.V.; and Actavis plc. The company was founded in 2003 and is headquartered in Rehovot, Israel.

Canopy Growth Company Profile

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. Canopy Growth Corporation has a clinical research partnership with NEEKA Health Canada to investigate the efficacy of cannabinoids for the treatment of post-concussion neurological diseases in former NHL players. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada.

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