Ascend Wellness (OTCMKTS:AAWH – Get Free Report) and Evolus (NASDAQ:EOLS – Get Free Report) are both small-cap healthcare companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Profitability
This table compares Ascend Wellness and Evolus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ascend Wellness | -23.31% | N/A | -10.85% |
| Evolus | -9.56% | N/A | -11.10% |
Institutional and Insider Ownership
17.3% of Ascend Wellness shares are owned by institutional investors. Comparatively, 90.7% of Evolus shares are owned by institutional investors. 21.9% of Ascend Wellness shares are owned by company insiders. Comparatively, 5.0% of Evolus shares are owned 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.
Earnings and Valuation
This table compares Ascend Wellness and Evolus”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ascend Wellness | $500.58 million | 0.14 | -$118.19 million | ($0.57) | -0.62 |
| Evolus | $297.18 million | 1.65 | -$51.64 million | ($0.47) | -15.80 |
Evolus has lower revenue, but higher earnings than Ascend Wellness. Evolus is trading at a lower price-to-earnings ratio than Ascend Wellness, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Ascend Wellness and Evolus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ascend Wellness | 0 | 1 | 0 | 0 | 2.00 |
| Evolus | 1 | 1 | 4 | 0 | 2.50 |
Evolus has a consensus target price of $15.00, indicating a potential upside of 102.05%. Given Evolus’ stronger consensus rating and higher possible upside, analysts plainly believe Evolus is more favorable than Ascend Wellness.
Risk and Volatility
Ascend Wellness has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Evolus has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.
Summary
Evolus beats Ascend Wellness on 9 of the 13 factors compared between the two stocks.
About Ascend Wellness
Ascend Wellness Holdings, Inc. is a vertically integrated cannabis company that cultivates, manufactures, and sells cannabis products in the United States. The company serves both medical and adult-use markets, subject to applicable state regulations. Ascend’s product portfolio includes flower, pre-rolls, vapes, concentrates, edibles, and other cannabis products sold under brands such as Ozone, Simply Herb, Common Goods, and &Shine. The company distributes products through its own retail dispensaries and through wholesale channels serving third-party cannabis retailers.
About Evolus
Evolus, Inc. is a medical aesthetics company focused on developing and commercializing treatments for cosmetic procedures. The company’s portfolio includes injectable products used by healthcare professionals to address facial lines and wrinkles and to enhance facial appearance. Its flagship product, Jeuveau (prabotulinumtoxinA-xvfs), is a prescription botulinum toxin treatment for moderate to severe frown lines between the eyebrows in adults. Evolus also markets Evolysse, a line of hyaluronic acid dermal fillers designed for facial aesthetic treatments.
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