Comparing Elanco Animal Health (NYSE:ELAN) & Canopy Growth (NASDAQ:CGC)

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

Analyst Ratings

This is a summary of recent ratings for Elanco Animal Health and Canopy Growth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elanco Animal Health	1	3	9	1	2.71
Canopy Growth	1	2	2	0	2.20

Elanco Animal Health presently has a consensus price target of $29.33, suggesting a potential upside of 19.27%. Given Elanco Animal Health’s stronger consensus rating and higher probable upside, analysts plainly believe Elanco Animal Health is more favorable than Canopy Growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elanco Animal Health	-3.96%	8.13%	3.99%
Canopy Growth	-65.33%	-21.91%	-14.34%

Valuation & Earnings

This table compares Elanco Animal Health and Canopy Growth”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elanco Animal Health	$4.71 billion	2.61	-$232.00 million	($0.41)	-59.99
Canopy Growth	$251.01 million	1.26	-$190.29 million	($0.45)	-1.57

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

Insider & Institutional Ownership

97.5% of Elanco Animal Health shares are held by institutional investors. Comparatively, 3.3% of Canopy Growth shares are held by institutional investors. 1.1% of Elanco Animal Health shares are held by company insiders. Comparatively, 0.3% of Canopy Growth shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Elanco Animal Health has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Canopy Growth has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Summary

Elanco Animal Health beats Canopy Growth on 13 of the 15 factors compared between the two stocks.

About Elanco Animal Health

Elanco Animal Health Incorporated, an animal health company, innovates, develops, manufactures, and markets products for pets and farm animals. It offers pet health disease prevention products, such as parasiticide and vaccine products that protect pets from worms, fleas, and ticks under the Seresto, Advantage, Advantix, and Advocate brands; pet health therapeutics for pain, osteoarthritis, ear infections, cardiovascular, and dermatology indications in canines and felines under the Galliprant and Claro brands; vaccines, antibiotics, parasiticides, and other products for use in poultry and aquaculture production, as well as nutritional health products, including enzymes, probiotics, and prebiotics; and a range of vaccines, antibiotics, implants, parasiticides, and other products used in ruminant and swine production under the Rumensin and Baytril brands. The company sells its products to third-party distributors; veterinarians; and farm animal producers, including beef and dairy farmers, as well as pork, poultry, and aquaculture operations. Elanco Animal Health Incorporated was founded in 1954 and is headquartered in Greenfield, Indiana.

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.