Cannlabs (OTCMKTS:CANL) versus Premier (NASDAQ:PINC) Critical Survey

Premier (NASDAQ:PINC) and Cannlabs (OTCMKTS:CANL) are both medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Premier and Cannlabs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Premier	1	6	0	0	1.86
Cannlabs	0	0	0	0	0.00

Premier presently has a consensus target price of $26.46, suggesting a potential downside of 6.38%. Given Cannlabs’ higher possible upside, analysts clearly believe Cannlabs is more favorable than Premier.

Risk & Volatility

Premier has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Cannlabs has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares Premier and Cannlabs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Premier	-3.28%	6.84%	3.48%
Cannlabs	N/A	N/A	N/A

Earnings & Valuation

This table compares Premier and Cannlabs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Premier	$1.00 billion	2.32	$20.27 million	($0.27)	-104.67
Cannlabs	N/A	N/A	N/A	N/A	N/A

Premier has higher revenue and earnings than Cannlabs.

Institutional and Insider Ownership

74.4% of Premier shares are held by institutional investors. 1.0% of Premier shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Premier beats Cannlabs on 6 of the 9 factors compared between the two stocks.

About Premier

Premier, Inc., together with its subsidiaries, operates as a healthcare improvement company in the United States. It operates in two segments, Supply Chain Services and Performance Services. The Supply Chain Services segment offers its members with an access to a range of products and services, including medical and surgical products, pharmaceuticals, laboratory supplies, capital equipment, information technology, facilities and construction, and food and nutritional products, as well as purchased services, such as clinical engineering and workforce solutions. This segment also provides the ASCENDrive programs for members to receive group purchasing programs, tiers, and prices; SURPASS Performance Group services; and STOCKD, an e-commerce platform, as well as direct sourcing business; SaaS informatics products; supply chain co-management services; purchased services contracts; direct sourcing solutions; and supply chain resiliency programs. The Performance Services segment provides technology and services platform with offerings that help optimize performance in three main areas, including clinical intelligence, margin improvement, and value-based care under the PINC AI brand; third party administrator services and management of health benefit programs under the Contigo Health brand; and digital invoicing and payables services that offers financial support services to healthcare product suppliers and service providers under the Remitra brand. The company was incorporated in 2013 and is based in Charlotte, North Carolina.

About Cannlabs

CannLabs, Inc. provides cannabis testing laboratory services in the United States. Its testing services include potency testing, residual solvent analysis, microbiological testing, pesticide testing, heavy metals testing, nutrient analysis, terpenes analysis, shelf-life/stability studies, gene expression testing, and genotyping/phenotyping testing. The company also offers data/analytics and consulting, as well as education services. CannLabs, Inc. was incorporated in 2010 and is based in Denver, Colorado.