Head to Head Review: Boston Scientific (NYSE:BSX) and TerrAscend (OTCMKTS:TSNDF)

Boston Scientific (NYSE:BSX) and TerrAscend (OTCMKTS:TSNDF) are both medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Volatility & Risk

Boston Scientific has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Boston Scientific and TerrAscend”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Scientific	$21.00 billion	3.25	$2.90 billion	$2.39	19.21
TerrAscend	$260.56 million	0.61	-$81.33 million	($0.10)	-5.13

Boston Scientific has higher revenue and earnings than TerrAscend. TerrAscend is trading at a lower price-to-earnings ratio than Boston Scientific, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

89.1% of Boston Scientific shares are held by institutional investors. Comparatively, 5.8% of TerrAscend shares are held by institutional investors. 0.3% of Boston Scientific shares are held by company insiders. Comparatively, 31.9% of TerrAscend shares are held by company 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.

Analyst Recommendations

This is a summary of current ratings and price targets for Boston Scientific and TerrAscend, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Scientific	2	4	24	1	2.77
TerrAscend	0	1	0	1	3.00

Boston Scientific currently has a consensus price target of $71.62, indicating a potential upside of 55.96%. Given Boston Scientific’s higher possible upside, analysts clearly believe Boston Scientific is more favorable than TerrAscend.

Profitability

This table compares Boston Scientific and TerrAscend’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Scientific	17.29%	19.17%	10.77%
TerrAscend	-45.86%	-24.69%	-4.46%

Summary

Boston Scientific beats TerrAscend on 11 of the 14 factors compared between the two stocks.

About Boston Scientific

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through two segments, MedSurg and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions, such as resolution clips, biliary stent systems, stents and electrocautery enhanced delivery systems, direct visualization systems, digital catheters, and single-use duodenoscopes; devices to treat urological conditions, including ureteral stents, catheters, baskets, guidewires, sheaths, balloons, single-use digital flexible ureteroscopes, holmium laser systems, artificial urinary sphincter, laser system, fiber, and hydrogel systems; and devices to treat neurological movement disorders and manage chronic pain, such as spinal cord stimulator system, proprietary programming software, radiofrequency generator, indirect decompression systems, practice optimization tools, and deep brain stimulation system. It also provides technologies for diagnosing and treating coronary artery disease and aortic valve conditions; WATCHMAN FLX, a Left Atrial Appendage Closure Device; and implantable devices that monitor the heart and deliver electricity to treat cardiac abnormalities, such as cardioverter and cardiac resynchronization therapy defibrillators, MRI S-ICD systems, cardiac resynchronization therapy pacemakers, quadripolar LV leads, ICD leads, pacing leads, remote patient management systems, insertable cardiac monitor systems, and remote cardiac monitoring systems. In addition, the company offers diagnosis and treatment of rate and rhythm disorders of the heart; peripheral arterial and venous diseases; and products to diagnose, treat and ease forms of cancer. The company was incorporated in 1979 and is headquartered in Marlborough, Massachusetts.

About TerrAscend

TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.