Newron Pharmaceuticals (OTCMKTS:NWPHF) vs. Flora Growth (NASDAQ:FLGC) Critical Comparison

Newron Pharmaceuticals (OTCMKTS:NWPHF) and Flora Growth (NASDAQ:FLGC) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares Newron Pharmaceuticals and Flora Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Newron Pharmaceuticals	N/A	N/A	N/A
Flora Growth	-21.56%	-161.06%	-45.47%

Analyst Ratings

This is a breakdown of recent ratings for Newron Pharmaceuticals and Flora Growth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Newron Pharmaceuticals	0	0	0	0	N/A
Flora Growth	0	1	1	0	2.50

Flora Growth has a consensus target price of $6.00, indicating a potential upside of 263.64%. Given Flora Growth’s higher probable upside, analysts plainly believe Flora Growth is more favorable than Newron Pharmaceuticals.

Insider and Institutional Ownership

36.0% of Flora Growth shares are held by institutional investors. 13.0% of Flora Growth shares are held by 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.

Valuation & Earnings

This table compares Newron Pharmaceuticals and Flora Growth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Newron Pharmaceuticals	$6.82 million	24.50	-$17.63 million	N/A	N/A
Flora Growth	$69.01 million	0.32	-$57.04 million	N/A	N/A

Newron Pharmaceuticals has higher earnings, but lower revenue than Flora Growth.

Risk and Volatility

Newron Pharmaceuticals has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Flora Growth has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Summary

Flora Growth beats Newron Pharmaceuticals on 6 of the 11 factors compared between the two stocks.

About Newron Pharmaceuticals

Newron Pharmaceuticals S.p.A., a biopharmaceutical company, focus on the development of novel therapies for the treatment of central nervous system (CNS) and pain in Italy and the United States. It offers Xadago (safinamide), a chemical entity for the treatment of Parkinson's in the European Union, Switzerland, the United Kingdom, the United States of America, Australia, Canada, Latin America, Israel, the United Arab Emirates, Japan, and South Korea. The company's product pipeline includes Evenamide, an add-on therapy for the treatment of Schizophrenia and treatment-resistant schizophrenia, which is in Phase III clinical trial; and Ralfinamide for the treatment of rare neuropathic pain indication. In addition, it has a strategic partnership with Zambon for the commercialization of safinamide; and license agreement with Meiji Seika Pharma Co., Ltd., for research, develop, manufacture, and marketing of safinamide. The company was founded in 1999 and is headquartered in Bresso, Italy.

About Flora Growth

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.