Critical Contrast: Verano (OTCMKTS:VRNOF) versus BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (NYSE:LND)

Verano (OTCMKTS:VRNOFGet Rating) and BrasilAgro – Companhia Brasileira de Propriedades Agrícolas (NYSE:LNDGet Rating) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Valuation and Earnings

This table compares Verano and BrasilAgro – Companhia Brasileira de Propriedades Agrícolas’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Verano $740,000.00 119.07 -$14.68 million ($0.35) -15.70
BrasilAgro – Companhia Brasileira de Propriedades Agrícolas $227.68 million 1.23 $58.96 million $1.11 4.07

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas has higher revenue and earnings than Verano. Verano is trading at a lower price-to-earnings ratio than BrasilAgro – Companhia Brasileira de Propriedades Agrícolas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Verano and BrasilAgro – Companhia Brasileira de Propriedades Agrícolas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verano -10.96% -5.83% -3.57%
BrasilAgro – Companhia Brasileira de Propriedades Agrícolas 30.53% 25.90% 17.30%

Institutional and Insider Ownership

1.4% of Verano shares are owned by institutional investors. Comparatively, 0.7% of BrasilAgro – Companhia Brasileira de Propriedades Agrícolas shares are owned by institutional investors. 0.7% of BrasilAgro – Companhia Brasileira de Propriedades Agrícolas shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Verano and BrasilAgro – Companhia Brasileira de Propriedades Agrícolas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verano 0 1 4 0 2.80
BrasilAgro – Companhia Brasileira de Propriedades Agrícolas 0 0 0 0 N/A

Verano presently has a consensus target price of $29.75, suggesting a potential upside of 441.25%. Given Verano’s higher probable upside, analysts clearly believe Verano is more favorable than BrasilAgro – Companhia Brasileira de Propriedades Agrícolas.

Summary

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas beats Verano on 8 of the 12 factors compared between the two stocks.

About Verano

(Get Rating)

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. It engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. The company offers artisanal cannabis products under the Encore, Avexia, MUV, and Verano brands for medical and adult-use markets. As of May 10, 2022, it operated 96 retail dispensaries, and 13 cultivation and processing facilities. The company is headquartered in Chicago, Illinois.

About BrasilAgro – Companhia Brasileira de Propriedades Agrícolas

(Get Rating)

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil. The company operates through six segments: Real Estate, Grains, Sugarcane, Cattle Raising, Cotton, and Other. It is involved in the cultivation of soybean, corn, sorghum, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. The company has 17 farms in 6 Brazilian states and 1 farm in Paraguay with a total area of 223,551 hectares of own lands and 51,747 hectares of leased lands. It also imports and exports agricultural products and inputs; purchases, sells, and/or rents properties, land, buildings, and real estate in rural and/or urban areas; provides real estate brokerage services; and manages third-party assets. The company was incorporated in 2005 and is headquartered in Sao Paulo, Brazil.

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