InMed Pharmaceuticals (NASDAQ:INM) vs. CannTrust (OTCMKTS:CNTTF) Critical Survey

InMed Pharmaceuticals (NASDAQ:INM) and CannTrust (OTCMKTS:CNTTF) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for InMed Pharmaceuticals and CannTrust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InMed Pharmaceuticals	0	0	0	0	N/A
CannTrust	0	0	0	0	N/A

Profitability

This table compares InMed Pharmaceuticals and CannTrust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InMed Pharmaceuticals	-108.02%	-53.42%	-45.36%
CannTrust	N/A	N/A	N/A

Volatility & Risk

InMed Pharmaceuticals has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, CannTrust has a beta of 4.52, indicating that its share price is 352% more volatile than the S&P 500.

Valuation and Earnings

This table compares InMed Pharmaceuticals and CannTrust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InMed Pharmaceuticals	$4.14 million	0.51	-$7.95 million	N/A	N/A
CannTrust	$15.96 million	0.00	$7.39 million	$0.07	N/A

CannTrust has higher revenue and earnings than InMed Pharmaceuticals.

Insider and Institutional Ownership

20.1% of InMed Pharmaceuticals shares are owned by institutional investors. Comparatively, 0.1% of CannTrust shares are owned by institutional investors. 1.4% of InMed Pharmaceuticals shares are owned 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.

Summary

CannTrust beats InMed Pharmaceuticals on 6 of the 8 factors compared between the two stocks.

About InMed Pharmaceuticals

InMed Pharmaceuticals Inc., a clinical stage pharmaceutical company, develops a pipeline of prescription-based products. The company operates through two segments, the InMed and the BayMedica. The InMed segment researches and develops cannabinoid-based pharmaceuticals products. The BayMedica segment develops proprietary manufacturing technologies to produce and sell rare cannabinoids for the health and wellness industry. Its prescription-based products include rare cannabinoids and novel cannabinoid analogs for the treatment of diseases with high unmet medical needs. The company's lead product is INM-755, a cannabinol topical skin cream, completed Phase 2 clinical trial for the treatment of epidermolysis bullosa. It also develops INM-088, which is in preclinical studies for the treatment of glaucoma; and INM-900 for neurodegenerative diseases. In addition, the company offers IntegraSyn, an integrated biosynthesis-based manufacturing approach, for pharmaceutical-grade cannabinoids; and cannabichromene, cannabicitran, cannabidivarin, and tetrahydrocannabivarin. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada.

About CannTrust

CannTrust Holdings Inc. produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. The company has a partnership with Gold Coast University Hospital. CannTrust Holdings Inc. was incorporated in 2015 and is headquartered in Vaughan, Canada.