Flora Growth (NASDAQ:FLGC – Get Free Report) and Pulmonx (NASDAQ:LUNG – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Institutional and Insider Ownership
36.0% of Flora Growth shares are owned by institutional investors. Comparatively, 91.0% of Pulmonx shares are owned by institutional investors. 2.3% of Flora Growth shares are owned by insiders. Comparatively, 7.5% of Pulmonx shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Flora Growth and Pulmonx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flora Growth | -32.03% | -64.02% | -34.46% |
| Pulmonx | -55.03% | -96.66% | -38.32% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flora Growth | $57.61 million | 0.09 | -$15.91 million | ($32.49) | -0.15 |
| Pulmonx | $87.44 million | 0.94 | -$54.00 million | ($1.16) | -1.65 |
Flora Growth has higher earnings, but lower revenue than Pulmonx. Pulmonx is trading at a lower price-to-earnings ratio than Flora Growth, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and price targets for Flora Growth and Pulmonx, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flora Growth | 1 | 0 | 0 | 0 | 1.00 |
| Pulmonx | 1 | 0 | 3 | 0 | 2.50 |
Pulmonx has a consensus price target of $7.67, indicating a potential upside of 301.40%. Given Pulmonx’s stronger consensus rating and higher possible upside, analysts clearly believe Pulmonx is more favorable than Flora Growth.
Risk and Volatility
Flora Growth has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Pulmonx has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
Summary
Pulmonx beats Flora Growth on 8 of the 14 factors compared between the two stocks.
About Flora Growth
Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products worldwide. It operates through three segments: House of Brands, Commercial and Wholesale, and Pharmaceuticals. The company cultivates, processes, and supplies medicinal-grade cannabis flower, and cannabis derived medical and wellness products. It also offers food and beverage, nutraceuticals, cannabis accessories and technology, personal care, and wellness; cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; cannabis consumption accessories, personal storage, and travel accessories for the vape and dry herbs. In addition, the company manufactures and distributes pharmaceutical goods and medical cannabis products to treat a variety of health indications, including drugs related to cancer therapies, attention-deficit/hyperactivity disorder, multiple sclerosis, and anti-depressants. The company sells its products under the JustCBD, Vessel, and Phatebo brands. Flora Growth Corp. was incorporated in 2019 and is based in Fort Lauderdale, Florida.
About Pulmonx
Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.
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