Reviewing Pervasip (OTCMKTS:PVSP) and Cronos Group (NASDAQ:CRON)

Cronos Group (NASDAQ:CRON) and Pervasip (OTCMKTS:PVSP) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

8.7% of Cronos Group shares are owned by institutional investors. 2.0% of Cronos Group shares are owned by company insiders. Comparatively, 9.2% of Pervasip shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cronos Group and Pervasip, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cronos Group	1	0	2	0	2.33
Pervasip	0	0	0	0	N/A

Cronos Group presently has a consensus price target of $2.83, suggesting a potential upside of 12.43%. Given Cronos Group’s higher probable upside, research analysts clearly believe Cronos Group is more favorable than Pervasip.

Profitability

This table compares Cronos Group and Pervasip’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cronos Group	-84.15%	-3.99%	-3.87%
Pervasip	-14.89%	N/A	-26.25%

Risk & Volatility

Cronos Group has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Pervasip has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cronos Group and Pervasip’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cronos Group	$87.24 million	11.03	-$73.96 million	($0.19)	-13.26
Pervasip	$15.77 million	0.14	-$2.35 million	N/A	N/A

Pervasip has lower revenue, but higher earnings than Cronos Group.

Summary

Cronos Group beats Pervasip on 7 of the 11 factors compared between the two stocks.

About Cronos Group

Cronos Group Inc. operates as a cannabinoid company that engages in the cultivation, production and marketing of cannabis products in Canada, Israel, and Germany. It offers dried flower, pre-rolls, oils, vaporizers, edibles, and cannabis tinctures under the Spinach, Lord Jones, and PEACE NATURALS brands. Cronos Group Inc. was founded in 2012 and is based in Toronto, Canada.

About Pervasip

Pervasip Corporation focuses on developing cloud-based applications to monitor and control greenhouse facilities. It intends to develop and deliver products and technologies to agricultural markets; develop scientific methods for the analysis of cannabinoids in flowers, concentrates, and edibles; and assist medical marijuana specialty production facilities to regulate, calculate proper dosage, and understand the importance of consistency in product. The company was formerly known as eLEC Communications Corp. and changed its name to Pervasip Corp. in December 2007. Pervasip Corp. was founded in 1964 and is based in White Plains, New York.