Financial Comparison: Pfizer (NYSE:PFE) vs. Canopy Growth (NASDAQ:CGC)

Canopy Growth (NASDAQ:CGC) and Pfizer (NYSE:PFE) are both healthcare companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Profitability

This table compares Canopy Growth and Pfizer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canopy Growth	-65.33%	-21.91%	-14.34%
Pfizer	6.80%	19.63%	8.46%

Volatility and Risk

Canopy Growth has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Pfizer has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canopy Growth	$251.01 million	1.21	-$190.29 million	($0.45)	-1.50
Pfizer	$62.58 billion	2.74	$7.77 billion	$0.76	39.52

Pfizer has higher revenue and earnings than Canopy Growth. Canopy Growth is trading at a lower price-to-earnings ratio than Pfizer, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Canopy Growth and Pfizer, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canopy Growth	1	2	2	0	2.20
Pfizer	2	14	5	0	2.14

Pfizer has a consensus price target of $28.72, suggesting a potential downside of 4.37%. Given Pfizer’s higher possible upside, analysts plainly believe Pfizer is more favorable than Canopy Growth.

Insider & Institutional Ownership

3.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 68.4% of Pfizer shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 0.6% of Pfizer shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Pfizer beats Canopy Growth on 12 of the 14 factors compared between the two stocks.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.

About Pfizer

Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. It also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Litfulo, Velsipity, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, Somavert, Ngenla, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Bosulif, Mektovi, Padcev, Adcetris, Talzenna, Tukysa, Elrexfio, Tivdak, Lorbrena, and Braftovi brands. In addition, the company involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; and BioNTech SE. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.