Cronos Group (NASDAQ:CRON – Get Free Report) and Nektar Therapeutics (NASDAQ:NKTR – Get Free Report) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
8.7% of Cronos Group shares are held by institutional investors. Comparatively, 75.9% of Nektar Therapeutics shares are held by institutional investors. 7.8% of Cronos Group shares are held by insiders. Comparatively, 2.5% of Nektar Therapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings for Cronos Group and Nektar Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cronos Group | 1 | 2 | 2 | 0 | 2.20 |
| Nektar Therapeutics | 1 | 1 | 9 | 0 | 2.73 |
Volatility and Risk
Cronos Group has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Nektar Therapeutics has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.
Valuation and Earnings
This table compares Cronos Group and Nektar Therapeutics”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cronos Group | $146.59 million | 7.28 | -$9.45 million | $0.01 | 286.00 |
| Nektar Therapeutics | $55.23 million | 43.46 | -$164.08 million | ($8.42) | -8.44 |
Cronos Group has higher revenue and earnings than Nektar Therapeutics. Nektar Therapeutics is trading at a lower price-to-earnings ratio than Cronos Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cronos Group and Nektar Therapeutics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cronos Group | -1.14% | -1.26% | -1.20% |
| Nektar Therapeutics | -284.18% | -85.40% | -39.99% |
Summary
Cronos Group beats Nektar Therapeutics on 8 of the 14 factors compared between the two stocks.
About Cronos Group
Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.
About Nektar Therapeutics
Nektar Therapeutics, a biopharmaceutical company, focuses on discovering and developing medicines in the field of immunotherapy in the United States and internationally. The company is developing rezpegaldesleukin, a cytokine Treg stimulant that is in phase 2 clinical trial for the treatment of systemic lupus erythematosus and ulcerative colitis, as well as phase 2b clinical trial to treat atopic dermatitis and psoriasis; and NKTR-255, an IL-15 receptor agonist, which is in phase 1 clinical trial to boost the immune system's natural ability to fight cancer. It has collaboration agreements with Takeda Pharmaceutical Company Ltd.; AstraZeneca AB; UCB Pharma S.A.; F. Hoffmann-La Roche Ltd; Bausch Health Companies Inc.; Pfizer Inc.; Amgen Inc.; UCB Pharma (Biogen); Bristol-Myers Squibb Company; Merck KGaA; and SFJ Pharmaceuticals, Inc. The company was incorporated in 1990 and is headquartered in San Francisco, California.
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