Aurora Cannabis (NYSE: ACB) is one of 33 publicly-traded companies in the “Medicinals & botanicals” industry, but how does it compare to its peers? We will compare Aurora Cannabis to similar businesses based on the strength of its profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.
This table compares Aurora Cannabis and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Aurora Cannabis Competitors||-163.69%||-267.59%||-46.37%|
11.5% of Aurora Cannabis shares are held by institutional investors. Comparatively, 21.6% of shares of all “Medicinals & botanicals” companies are held by institutional investors. 25.8% of shares of all “Medicinals & botanicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings for Aurora Cannabis and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Aurora Cannabis Competitors||136||361||413||14||2.33|
Aurora Cannabis currently has a consensus target price of $14.03, indicating a potential upside of 249.09%. As a group, “Medicinals & botanicals” companies have a potential upside of 86.88%. Given Aurora Cannabis’ higher probable upside, research analysts clearly believe Aurora Cannabis is more favorable than its peers.
Valuation and Earnings
This table compares Aurora Cannabis and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Aurora Cannabis||$207.89 million||-$2.47 billion||-1.41|
|Aurora Cannabis Competitors||$218.50 million||-$99.79 million||1.73|
Aurora Cannabis’ peers have higher revenue and earnings than Aurora Cannabis. Aurora Cannabis is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Aurora Cannabis has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Aurora Cannabis’ peers have a beta of 2.56, meaning that their average share price is 156% more volatile than the S&P 500.
Aurora Cannabis peers beat Aurora Cannabis on 10 of the 13 factors compared.
About Aurora Cannabis
Aurora Cannabis Inc. produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution. The company's products consist of dried cannabis and cannabis oil; CanniMed vegan capsules; and hemp products, as well as sells vaporizers, consumable vaporizer accessories, and herb mills for using herbal cannabis products. It also operates CanvasRX, a network of cannabis counseling and outreach centers; and provides cannabis analytical product testing services. As of February 26, 2019, the company had operations in 24 countries across five continents. Aurora Cannabis Inc. has collaboration agreements with PharmaChoice, Pharmasave, and Shoppers Drug Mart for the distribution, sale, and marketing of medical cannabis products through their respective networks of pharmacies. The company has a strategic agreements with Hempco Food and Fiber Inc.; CTT Pharmaceuticals Inc.; Choom Holdings Inc.; Capcium Inc.; The Green Organic Dutchman Holdings Ltd.; Société des Alcools du Québec; Alcanna; Radient Technologies; Micron Waste; Wagner Dimas; Evio; and Cann Group Limited. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.
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