Comparing Curaleaf (OTCMKTS:CURLF) & IM Cannabis (NASDAQ:IMCC)

Curaleaf (OTCMKTS:CURLF – Get Rating) and IM Cannabis (NASDAQ:IMCC – Get Rating) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

0.1% of Curaleaf shares are held by institutional investors. Comparatively, 86.6% of IM Cannabis shares are held by institutional investors. 5.9% of IM Cannabis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Curaleaf and IM Cannabis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curaleaf	0	0	7	0	3.00
IM Cannabis	0	0	0	0	N/A

Curaleaf presently has a consensus target price of $11.14, suggesting a potential upside of 228.02%. IM Cannabis has a consensus target price of $13.75, suggesting a potential upside of 1,904.52%. Given IM Cannabis’ higher probable upside, analysts clearly believe IM Cannabis is more favorable than Curaleaf.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Curaleaf	-9.72%	-7.17%	-3.67%
IM Cannabis	-203.34%	-28.22%	-18.95%

Earnings & Valuation

This table compares Curaleaf and IM Cannabis’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curaleaf	$1.21 billion	1.75	-$101.73 million	($0.18)	-18.87
IM Cannabis	$43.32 million	0.18	-$14.17 million	($19.10)	-0.04

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

Summary

Curaleaf beats IM Cannabis on 7 of the 12 factors compared between the two stocks.

About Curaleaf

(Get Rating)

Curaleaf Holdings, Inc. operates as a holding company with interest in medical and wellness cannabis operations. It operates through the Cannabis Operations and Non-Cannabis Operations segments. The Cannabis Operations segment includes the production and sale of cannabis via retail and wholesale channels. The Non-Cannabis Operations segment provides professional services including cultivation, processing and retail know-how and back office administration, intellectual property licensing, real estate leasing services and lending facilities to medical and adult-use cannabis licensees under management service agreements. The company was founded on November 13, 2014 and is headquartered in Wakefield, MA.

About IM Cannabis

(Get Rating)

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel, Germany, and Canada. It offers cannabis flowers and strain specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, and pressed hash offerings under the WAGNERS and Highland Grow brands. The company serves medical patients and adult-use recreational consumers. IM Cannabis Corp. is headquartered in Tel Aviv-Yafo, Israel.