Critical Comparison: Aurora Cannabis (NASDAQ:ACB) and Prestige Consumer Healthcare (NYSE:PBH)

Aurora Cannabis (NASDAQ:ACB) and Prestige Consumer Healthcare (NYSE:PBH) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

47.6% of Aurora Cannabis shares are owned by institutional investors. Comparatively, 100.0% of Prestige Consumer Healthcare shares are owned by institutional investors. 0.0% of Aurora Cannabis shares are owned by company insiders. Comparatively, 1.5% of Prestige Consumer Healthcare 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.

Risk and Volatility

Aurora Cannabis has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Prestige Consumer Healthcare has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Profitability

This table compares Aurora Cannabis and Prestige Consumer Healthcare’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aurora Cannabis	-32.26%	4.37%	3.45%
Prestige Consumer Healthcare	15.57%	11.39%	5.66%

Earnings and Valuation

This table compares Aurora Cannabis and Prestige Consumer Healthcare”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aurora Cannabis	$247.82 million	1.01	-$88.13 million	($1.41)	-2.74
Prestige Consumer Healthcare	$1.09 billion	1.95	$190.30 million	$3.57	12.58

Prestige Consumer Healthcare has higher revenue and earnings than Aurora Cannabis. Aurora Cannabis is trading at a lower price-to-earnings ratio than Prestige Consumer Healthcare, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Aurora Cannabis and Prestige Consumer Healthcare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aurora Cannabis	1	1	1	1	2.50
Prestige Consumer Healthcare	1	3	2	0	2.17

Prestige Consumer Healthcare has a consensus price target of $70.75, indicating a potential upside of 57.51%. Given Prestige Consumer Healthcare’s higher possible upside, analysts clearly believe Prestige Consumer Healthcare is more favorable than Aurora Cannabis.

Summary

Prestige Consumer Healthcare beats Aurora Cannabis on 12 of the 15 factors compared between the two stocks.

About Aurora Cannabis

Aurora Cannabis Inc., together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. It operates through three segments: Canadian Cannabis, European Cannabis, and Plant Propagation. The company produces, distributes, and sells medical and consumer cannabis products in Canada. It is also involved in the distribution of wholesale medical cannabis in the European Union (EU); distribution of wholesale medical cannabis in various international markets, including Australia, the Caribbean, South America, and Israel; supply of propagated vegetables and ornamental plants in North America; and distribution and sale of hemp-derived cannabidiol (CBD) products. In addition, the company cultivates and sells dried cannabis, cannabis oils, capsules, edible cannabis, cannabis extracts, and soft gels, which are ingested in various ways, including smoking, vaporizing, and consumption in the form of oil, capsules, edibles, and extracts; and provides dried flowers, vapes, dried milled strains, strain-specific extracts, strain specific cannabis oils, and concentrates. Further, it offers recreational cannabis products, such as flowers, vapes, ingestibles, concentrates, extracts, and CBD products; and patient counseling and outreach services. The company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being, and Greybeard, as well as CBD brands, Reliva and KG7; and medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, Pedanios, Bidiol, and CraftPlant. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

About Prestige Consumer Healthcare

Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018. Prestige Consumer Healthcare Inc. was founded in 1996 and is headquartered in Tarrytown, New York.