Head to Head Analysis: Cronos Group (CRON) vs. Its Competitors

Cronos Group (NASDAQ: CRON) is one of 33 public companies in the “Medicinals & botanicals” industry, but how does it contrast to its peers? We will compare Cronos Group to related companies based on the strength of its risk, analyst recommendations, earnings, profitability, valuation, dividends and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for Cronos Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cronos Group 1 4 4 0 2.33
Cronos Group Competitors 135 357 403 14 2.33

Cronos Group presently has a consensus price target of $9.83, suggesting a potential upside of 96.27%. As a group, “Medicinals & botanicals” companies have a potential upside of 118.46%. Given Cronos Group’s peers higher probable upside, analysts plainly believe Cronos Group has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Cronos Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cronos Group $25.64 million $1.17 billion 7.48
Cronos Group Competitors $219.25 million -$99.48 million 2.15

Cronos Group’s peers have higher revenue, but lower earnings than Cronos Group. Cronos Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

12.1% of Cronos Group shares are owned by institutional investors. Comparatively, 21.6% of shares of all “Medicinals & botanicals” companies are owned by institutional investors. 7.9% of Cronos Group shares are owned by company insiders. Comparatively, 25.8% of shares of all “Medicinals & botanicals” companies 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.

Profitability

This table compares Cronos Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cronos Group 1,729.07% -2.57% -2.17%
Cronos Group Competitors -1,150.45% -258.05% -48.97%

Volatility and Risk

Cronos Group has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Cronos Group’s peers have a beta of 2.57, suggesting that their average share price is 157% more volatile than the S&P 500.

Summary

Cronos Group beats its peers on 7 of the 13 factors compared.

Cronos Group Company Profile

Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm. The firm seeks to invest in companies either licensed, or actively seeking a license, to produce medical marijuana pursuant to Canada's Marihuana for Medical Purposes Regulations “MMPR”. The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment, but does not need control. Cronos Group Inc. was incorporated in January, 2013 and is based in Toronto, Canada with an additional office in Toronto, Canada.

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