Critical Review: MariMed (OTCMKTS:MRMD) versus Cronos Group (NASDAQ:CRON)

MariMed (OTCMKTS:MRMD) and Cronos Group (NASDAQ:CRON) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

This table compares MariMed and Cronos Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MariMed	-10.79%	-1.84%	-0.72%
Cronos Group	-84.15%	-3.99%	-3.87%

Earnings and Valuation

This table compares MariMed and Cronos Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MariMed	$148.60 million	0.66	-$16.03 million	($0.04)	-6.50
Cronos Group	$87.24 million	10.66	-$73.96 million	($0.19)	-12.84

MariMed has higher revenue and earnings than Cronos Group. Cronos Group is trading at a lower price-to-earnings ratio than MariMed, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

MariMed has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500. Comparatively, Cronos Group has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

0.2% of MariMed shares are held by institutional investors. Comparatively, 8.7% of Cronos Group shares are held by institutional investors. 20.6% of MariMed shares are held by company insiders. Comparatively, 2.0% of Cronos Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for MariMed and Cronos Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MariMed	0	0	0	0	N/A
Cronos Group	1	0	2	0	2.33

Cronos Group has a consensus price target of $2.83, suggesting a potential upside of 16.12%. Given Cronos Group’s higher possible upside, analysts plainly believe Cronos Group is more favorable than MariMed.

Summary

MariMed beats Cronos Group on 9 of the 13 factors compared between the two stocks.

About MariMed

MariMed Inc. engages in cultivation, production, and dispensing of medicinal and recreational cannabis in the United States and internationally. The company sells flowers and concentrates under the Nature's Heritage brand; and soft and chewy baked goods and a hot chocolate mix under Bubby's Baked brand; and drink mix under Vibations brand. It also offers chewable cannabis-infused mint tablet under the brand Kalm Fusion; and flower, vapes, and edibles under InHouse brand. In addition, the company provides supplement, nutrient-infused fruit chews under Betty's Eddies brand and ice creams under Emack & Bolio's brand. The company licenses its brands. MariMed Inc. was incorporated in 2011 and is based in Norwood, Massachusetts.

About Cronos Group

Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.