Head-To-Head Review: Vireo Growth (OTCMKTS:VREOD) vs. Journey Medical (NASDAQ:DERM)

Journey Medical (NASDAQ:DERM) and Vireo Growth (OTCMKTS:VREOD) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, institutional ownership, profitability and earnings.

Insider and Institutional Ownership

7.2% of Journey Medical shares are owned by institutional investors. 14.5% of Journey Medical shares are owned by company insiders. Comparatively, 3.8% of Vireo Growth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Journey Medical and Vireo Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Journey Medical	-8.95%	-20.23%	-6.60%
Vireo Growth	-23.37%	-19.76%	-7.15%

Risk & Volatility

Journey Medical has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Vireo Growth has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.

Earnings & Valuation

This table compares Journey Medical and Vireo Growth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Journey Medical	$68.18 million	2.74	-$11.43 million	($0.22)	-30.05
Vireo Growth	$268.77 million	1.68	-$68.11 million	($3.30)	-3.02

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Journey Medical and Vireo Growth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Journey Medical	1	1	2	0	2.25
Vireo Growth	1	0	0	0	1.00

Journey Medical presently has a consensus price target of $14.00, indicating a potential upside of 111.80%. Given Journey Medical’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Journey Medical is more favorable than Vireo Growth.

Summary

Journey Medical beats Vireo Growth on 10 of the 14 factors compared between the two stocks.

About Journey Medical

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris. It also offers Zilxi, a topical minocycline treatment for inflammatory lesions of rosacea; Exelderm cream and solution an antifungal intended for topical use; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; and Luxamend, a water-based emulsion formulated to provide a moist healing environment for superficial wounds; minor cuts or scrapes; dermal ulcers; donor sites; first- and second-degree burns, including sunburns; and radiation dermatitis. In addition, the company sells sulconazole nitrate cream and solution indicated for the treatment of tinea cruris, tinea corporis, and tinea versicolor; and doxycycline hyclate tablets, as an adjunctive therapy for severe acne. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona. Journey Medical Corporation is a subsidiary of Fortress Biotech, Inc.

About Vireo Growth

Goodness Growth Holdings, Inc. operates as a cannabis company in the United States. The company cultivates, processes, and distributes medical and adult-use cannabis products. It sells cannabis products through its network of Green Goods and other Goodness Growth branded retail dispensaries and third-party dispensaries in Maryland, Minnesota, and New York. The company was formerly known as Vireo Health International Inc. and changed its name to Goodness Growth Holdings, Inc. in June 2021. Goodness Growth Holdings, Inc. is headquartered in Minneapolis, Minnesota.