Critical Analysis: IM Cannabis (NASDAQ:IMCC) and MariMed (OTCMKTS:MRMD)

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

Earnings & Valuation

This table compares IM Cannabis and MariMed’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IM Cannabis	$36.15 million	0.14	-$7.04 million	($0.80)	-0.46
MariMed	$148.60 million	0.45	-$16.03 million	($0.04)	-4.38

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

Profitability

This table compares IM Cannabis and MariMed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IM Cannabis	-28.03%	-75.51%	-24.18%
MariMed	-10.97%	-2.75%	-1.06%

Risk & Volatility

IM Cannabis has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, MariMed has a beta of 2.8, indicating that its stock price is 180% more volatile than the S&P 500.

Institutional and Insider Ownership

7.7% of IM Cannabis shares are owned by institutional investors. Comparatively, 0.2% of MariMed shares are owned by institutional investors. 20.6% of MariMed shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for IM Cannabis and MariMed, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	0	0	0	0	N/A
MariMed	0	0	0	0	N/A

Summary

MariMed beats IM Cannabis on 8 of the 11 factors compared between the two stocks.

About IM Cannabis

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel and Germany. It offers cannabis flowers and strain-specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, minis, and full spectrum extracts offerings under the WAGNERS and BLKMKT brands. The company serves medical patients. IM Cannabis Corp. is headquartered in Tel Aviv, Israel.

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.