Financial Comparison: Hero Technologies (OTCMKTS:HENC) & Ayr Wellness (OTCMKTS:AYRWF)

Hero Technologies (OTCMKTS:HENC) and Ayr Wellness (OTCMKTS:AYRWF) are both small-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Hero Technologies and Ayr Wellness, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hero Technologies	0	0	0	0	N/A
Ayr Wellness	0	1	1	0	2.50

Ayr Wellness has a consensus price target of $3.75, indicating a potential upside of 81.69%. Given Ayr Wellness’ higher probable upside, analysts plainly believe Ayr Wellness is more favorable than Hero Technologies.

Valuation and Earnings

This table compares Hero Technologies and Ayr Wellness’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hero Technologies	N/A	N/A	-$540,000.00	N/A	N/A
Ayr Wellness	$465.62 million	0.34	-$245.47 million	($5.84)	-0.35

Hero Technologies has higher earnings, but lower revenue than Ayr Wellness.

Institutional & Insider Ownership

1.0% of Ayr Wellness shares are held by institutional investors. 0.2% of Hero Technologies shares are held by insiders. Comparatively, 8.1% of Ayr Wellness shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Hero Technologies and Ayr Wellness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hero Technologies	N/A	N/A	-372.58%
Ayr Wellness	-89.49%	-12.36%	-5.69%

Risk and Volatility

Hero Technologies has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, Ayr Wellness has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500.

Summary

Ayr Wellness beats Hero Technologies on 7 of the 10 factors compared between the two stocks.

About Hero Technologies

Hero Technologies Inc. operates as an early-stage cannabis company. It focuses on the provision of BlackBox, an aeroponic cannabis cultivation system that provides optimal growing conditions to enhance photosynthesis and the cultivation of large flowering plants and create increased harvest efficiencies. The company also intends to offer cannabis genetic engineering farmland for medical and recreational cannabis cultivation, production, distribution, packaging, and retail operations, as well as for dispensaries. The company is based in Dover, Delaware.

About Ayr Wellness

Ayr Wellness Inc. operates as a vertically-integrated cannabis multi-state operator that cultivates, manufactures, and retails cannabis products and branded cannabis packaged goods. It owns and operates a chain of cannabis retail stores under AYR, Liberty Health Sciences, and The Dispensary brand names. The company was formerly known as Ayr Strategies Inc. and changed its name to Ayr Wellness Inc. in February 2021. Ayr Wellness Inc. was incorporated in 2017 and is headquartered in Miami, Florida.