Comparing Cumberland Pharmaceuticals (NASDAQ:CPIX) and Tilray Brands (NASDAQ:TLRY)

Cumberland Pharmaceuticals (NASDAQ:CPIX) and Tilray Brands (NASDAQ:TLRY) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Insider & Institutional Ownership

15.5% of Cumberland Pharmaceuticals shares are held by institutional investors. Comparatively, 9.4% of Tilray Brands shares are held by institutional investors. 42.1% of Cumberland Pharmaceuticals shares are held by insiders. Comparatively, 1.6% of Tilray Brands shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Cumberland Pharmaceuticals has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Tilray Brands has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cumberland Pharmaceuticals and Tilray Brands”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cumberland Pharmaceuticals	$44.52 million	2.86	-$2.84 million	($0.71)	-11.96
Tilray Brands	$210.48 million	1.97	-$121.40 million	($1.40)	-2.01

Cumberland Pharmaceuticals has higher earnings, but lower revenue than Tilray Brands. Cumberland Pharmaceuticals is trading at a lower price-to-earnings ratio than Tilray Brands, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cumberland Pharmaceuticals and Tilray Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cumberland Pharmaceuticals	-34.40%	-28.81%	-9.25%
Tilray Brands	-16.91%	-10.39%	-7.38%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cumberland Pharmaceuticals and Tilray Brands, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cumberland Pharmaceuticals	1	0	0	0	1.00
Tilray Brands	2	2	3	1	2.38

Tilray Brands has a consensus target price of $5.90, indicating a potential upside of 109.96%. Given Tilray Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Tilray Brands is more favorable than Cumberland Pharmaceuticals.

Summary

Tilray Brands beats Cumberland Pharmaceuticals on 10 of the 15 factors compared between the two stocks.

About Cumberland Pharmaceuticals

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; Sancuso, an injection for the treatment of chemotherapy treatment; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

About Tilray Brands

Tilray, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. is headquartered in Canada.