Financial Review: Electromed (NYSE:ELMD) and Jushi (OTCMKTS:JUSHF)

Jushi (OTCMKTS:JUSHF) and Electromed (NYSE:ELMD) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Risk and Volatility

Jushi has a beta of -0.61, meaning that its stock price is 161% less volatile than the S&P 500. Comparatively, Electromed has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Profitability

This table compares Jushi and Electromed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jushi	-19.98%	N/A	-12.91%
Electromed	11.34%	15.71%	13.37%

Valuation & Earnings

This table compares Jushi and Electromed”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jushi	$262.91 million	0.32	-$68.59 million	($0.28)	-1.48
Electromed	$73.78 million	3.04	$5.15 million	$1.31	20.66

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

Analyst Recommendations

This is a breakdown of recent ratings for Jushi and Electromed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jushi	0	0	1	0	3.00
Electromed	0	1	3	0	2.75

Electromed has a consensus price target of $43.75, suggesting a potential upside of 61.68%. Given Electromed’s higher probable upside, analysts plainly believe Electromed is more favorable than Jushi.

Insider & Institutional Ownership

21.7% of Jushi shares are held by institutional investors. Comparatively, 40.8% of Electromed shares are held by institutional investors. 23.1% of Jushi shares are held by company insiders. Comparatively, 11.0% of Electromed shares are held by company 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

Electromed beats Jushi on 11 of the 14 factors compared between the two stocks.

About Jushi

Jushi Holdings Inc., a vertically integrated cannabis company, engages in the cultivation, processing, retail, and distribution of cannabis for medical and adult-use markets. The company offers flower, extracts, concentrates, edibles, oil, pre-rolls, tinctures, capsules, softgels, cannabis-infused gummies and ultra-premium chocolate, and topicals products, as well as vaporization devices and cartridges under The Bank, The Lab, Nira+ Medicinals, Sèchè, Tasteology, and Hijinks brands. It is also involved in the bulk wholesale of refined cannabinoids and terpenes. In addition, the company operates medical cannabis dispensaries under the BEYOND/HELLO, Nature’s Remedy, and NuLeaf brands. It markets its products to local dispensaries and large multi-state operators. The company is headquartered in Boca Raton, Florida.

About Electromed

Electromed, Inc. develops, manufactures, markets, and sells airway clearance therapy and related products that apply high frequency chest wall oscillation (HFCWO) therapy in pulmonary care for patients of various ages in the United States and internationally. The company offers SmartVest airway clearance system for patients with compromised pulmonary functions, including bronchiectasis and cystic fibrosis, as well as neuromuscular conditions, such as cerebral palsy and amyotrophic lateral sclerosis; SmartVest SQL System; SmartVest Clearway System that consists of an inflatable therapy garment, a programmable air pulse generator, and a patented single-hose that delivers air pulses from the generator to the garment to create oscillatory pressure on the chest wall; and SmartVest Connect, a wireless technology that allows data connection between physicians and patients to track therapy performance and collaborate in treatment decisions. It also provides single patient use SmartVest and SmartVest Wrap products for health care providers in the acute care setting. The company offers its products to hospitals, home health care centers, pulmonary rehabilitation centers, cystic fibrosis centers, neuromuscular clinics, and other clinics through distributors. It markets its products to physicians, health care providers, and directly to patients. Electromed, Inc. was incorporated in 1992 and is headquartered in New Prague, Minnesota.