Analyzing IM Cannabis (IMCC) and Its Peers

IM Cannabis (NASDAQ:IMCC) is one of 894 publicly-traded companies in the “Pharmaceuticals” industry, but how does it compare to its competitors? We will compare IM Cannabis to similar companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Institutional & Insider Ownership

7.7% of IM Cannabis shares are held by institutional investors. Comparatively, 32.5% of shares of all “Pharmaceuticals” companies are held by institutional investors. 5.9% of IM Cannabis shares are held by company insiders. Comparatively, 14.1% of shares of all “Pharmaceuticals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares IM Cannabis and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IM Cannabis	-39.62%	N/A	-58.32%
IM Cannabis Competitors	-2,393.19%	-220.45%	-16.12%

Analyst Recommendations

This is a breakdown of current ratings and price targets for IM Cannabis and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	1	0	0	0	1.00
IM Cannabis Competitors	7819	13782	25790	1035	2.41

As a group, “Pharmaceuticals” companies have a potential upside of 24.74%. Given IM Cannabis’ competitors stronger consensus rating and higher possible upside, analysts plainly believe IM Cannabis has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares IM Cannabis and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
IM Cannabis	$39.17 million	-$8.10 million	-0.01
IM Cannabis Competitors	$3.54 billion	$3.17 billion	553.74

IM Cannabis’ competitors have higher revenue and earnings than IM Cannabis. IM Cannabis is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

IM Cannabis has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500. Comparatively, IM Cannabis’ competitors have a beta of -0.05, meaning that their average share price is 105% less volatile than the S&P 500.

Summary

IM Cannabis competitors beat IM Cannabis on 10 of the 13 factors compared.

About IM Cannabis

IM Cannabis Corp. (NASDAQ: IMCC) is a medical cannabis company focused primarily on the Israeli and German markets. The company develops, sources, imports, distributes and markets medical cannabis products under the IMC brand, serving patients through pharmacies, clinics and other authorized channels. In Israel, IM Cannabis is involved in the supply of medical cannabis products, including flower and other cannabis-based offerings, through affiliated cultivation, processing and distribution operations.