True Drinks (TRUU) & Canopy Growth (CGC) Financial Analysis

True Drinks (OTCMKTS:TRUU) and Canopy Growth (NYSE:CGC) are both consumer staples companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for True Drinks and Canopy Growth, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
True Drinks 0 0 0 0 N/A
Canopy Growth 0 3 4 0 2.57

Canopy Growth has a consensus target price of $55.76, suggesting a potential upside of 23.79%. Given Canopy Growth’s higher possible upside, analysts plainly believe Canopy Growth is more favorable than True Drinks.

Earnings and Valuation

This table compares True Drinks and Canopy Growth’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
True Drinks $3.82 million 0.36 -$12.44 million N/A N/A
Canopy Growth $60.79 million 172.01 -$54.88 million ($0.32) -140.75

True Drinks has higher earnings, but lower revenue than Canopy Growth.

Insider and Institutional Ownership

13.5% of Canopy Growth shares are owned by institutional investors. 18.2% of True Drinks shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
True Drinks N/A N/A -236.18%
Canopy Growth -267.40% -14.39% -11.12%

Volatility and Risk

True Drinks has a beta of 4.75, meaning that its share price is 375% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 4.46, meaning that its share price is 346% more volatile than the S&P 500.

Summary

Canopy Growth beats True Drinks on 6 of the 11 factors compared between the two stocks.

About True Drinks

True Drinks Holdings, Inc. develops, markets, sells, and distributes naturally flavored water in the United States. The company offers AquaBall Naturally Flavored Water, a zero-sugar, zero-calorie, preservative-free, vitamin-enhanced, and naturally flavored water drink. It also markets and distributes Bazi All Natural Energy, a liquid nutritional supplement drink. True Drinks Holdings, Inc. distributes its products through various retail channels, such as grocery and convenience stores, mass merchandisers, and drug stores, as well as through its e-commerce platform. The company was formerly known as True Drinks, Inc. and changed its name to True Drinks Holdings, Inc. in October 2012. True Drinks Holdings, Inc. was founded in 2008 and is headquartered in Irvine, California.

About Canopy Growth

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. 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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