Cronos Group (CRON) versus Its Competitors Critical Review

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

Profitability

This table compares Cronos Group and its rivals’ 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%

Valuation & Earnings

This table compares Cronos Group and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cronos Group $25.64 million $1.17 billion 7.51
Cronos Group Competitors $219.25 million -$99.48 million 2.20

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

Analyst Ratings

This is a breakdown of recent ratings for Cronos Group and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cronos Group 1 4 4 0 2.33
Cronos Group Competitors 135 359 403 14 2.32

Cronos Group presently has a consensus price target of $9.83, indicating a potential upside of 95.49%. As a group, “Medicinals & botanicals” companies have a potential upside of 120.58%. Given Cronos Group’s rivals higher possible upside, analysts plainly believe Cronos Group has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

12.1% of Cronos Group shares are held by institutional investors. Comparatively, 21.6% of shares of all “Medicinals & botanicals” companies are held by institutional investors. 7.9% of Cronos Group shares are held by company insiders. Comparatively, 25.8% of shares of all “Medicinals & botanicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Cronos Group has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Cronos Group’s rivals have a beta of 2.57, suggesting that their average stock price is 157% more volatile than the S&P 500.

Summary

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

About Cronos Group

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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