LENSAR (NASDAQ:LNSR) vs. TerrAscend (OTCMKTS:TSNDF) Head-To-Head Analysis

TerrAscend (OTCMKTS:TSNDF) and LENSAR (NASDAQ:LNSR) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Volatility & Risk

TerrAscend has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, LENSAR has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for TerrAscend and LENSAR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TerrAscend	0	1	0	1	3.00
LENSAR	1	0	2	0	2.33

LENSAR has a consensus target price of $11.33, suggesting a potential upside of 74.09%. Given LENSAR’s higher possible upside, analysts plainly believe LENSAR is more favorable than TerrAscend.

Institutional and Insider Ownership

5.8% of TerrAscend shares are held by institutional investors. Comparatively, 40.1% of LENSAR shares are held by institutional investors. 31.9% of TerrAscend shares are held by insiders. Comparatively, 65.8% of LENSAR 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TerrAscend	-31.01%	-32.93%	-5.49%
LENSAR	57.57%	-529.08%	50.03%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TerrAscend	$260.56 million	0.60	-$81.33 million	($0.11)	-4.63
LENSAR	$58.44 million	1.37	-$34.28 million	($0.33)	-19.73

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

Summary

LENSAR beats TerrAscend on 8 of the 15 factors compared between the two stocks.

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.

About LENSAR

LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.