AdaptHealth (NASDAQ:AHCO – Get Free Report) and Cresco Labs (OTCMKTS:CRLBF – Get Free Report) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Insider and Institutional Ownership
82.7% of AdaptHealth shares are owned by institutional investors. Comparatively, 0.1% of Cresco Labs shares are owned by institutional investors. 1.6% of AdaptHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
AdaptHealth has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, Cresco Labs has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AdaptHealth | 1 | 1 | 4 | 0 | 2.50 |
| Cresco Labs | 1 | 0 | 0 | 1 | 2.50 |
AdaptHealth currently has a consensus target price of $13.25, suggesting a potential upside of 44.81%. Given AdaptHealth’s higher probable upside, research analysts plainly believe AdaptHealth is more favorable than Cresco Labs.
Profitability
This table compares AdaptHealth and Cresco Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AdaptHealth | -2.18% | 3.42% | 1.23% |
| Cresco Labs | -7.79% | -14.25% | -3.90% |
Earnings & Valuation
This table compares AdaptHealth and Cresco Labs”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AdaptHealth | $3.24 billion | 0.38 | $90.42 million | ($0.55) | -16.64 |
| Cresco Labs | $724.34 million | 0.49 | -$74.44 million | ($0.15) | -6.60 |
AdaptHealth has higher revenue and earnings than Cresco Labs. AdaptHealth is trading at a lower price-to-earnings ratio than Cresco Labs, indicating that it is currently the more affordable of the two stocks.
Summary
AdaptHealth beats Cresco Labs on 10 of the 14 factors compared between the two stocks.
About AdaptHealth
AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.
About Cresco Labs
Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections and fruit-forward gummies under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.
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