Comparing Cronos Group (NASDAQ:CRON) & Takeda Pharmaceutical (NYSE:TAK)

Cronos Group (NASDAQ:CRON) and Takeda Pharmaceutical (NYSE:TAK) are both healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Earnings and Valuation

This table compares Cronos Group and Takeda Pharmaceutical”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	$179.09 million	6.83	-$9.45 million	$0.20	16.60
Takeda Pharmaceutical	$4,618.94 billion	0.01	-$1.01 billion	$0.34	54.71

Cronos Group has higher earnings, but lower revenue than Takeda Pharmaceutical. Cronos Group is trading at a lower price-to-earnings ratio than Takeda Pharmaceutical, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cronos Group	39.08%	4.85%	4.62%
Takeda Pharmaceutical	3.80%	10.95%	5.34%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cronos Group and Takeda Pharmaceutical, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cronos Group	0	3	2	0	2.40
Takeda Pharmaceutical	0	1	2	1	3.00

Cronos Group currently has a consensus price target of $2.30, indicating a potential downside of 30.72%. Given Cronos Group’s higher possible upside, equities analysts plainly believe Cronos Group is more favorable than Takeda Pharmaceutical.

Insider & Institutional Ownership

8.7% of Cronos Group shares are owned by institutional investors. Comparatively, 9.2% of Takeda Pharmaceutical shares are owned by institutional investors. 7.8% of Cronos Group shares are owned by company insiders. Comparatively, 0.0% of Takeda Pharmaceutical shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Cronos Group has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Takeda Pharmaceutical has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Summary

Takeda Pharmaceutical beats Cronos Group on 8 of the 14 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 Takeda Pharmaceutical

Takeda Pharmaceutical Company Limited engages in the research, development, manufacture, marketing, and out-licensing of pharmaceutical products in Japan and internationally. It offers pharmaceutical products in the areas of gastroenterology, rare diseases, plasma derived therapies, immunology, oncology, and neuroscience. The company provides its products under the Entyvio, Gattex/Revestive, Takecab/Vocinti, Alofisel, Dexilant, Pantoloc/Controloc, Adynovate/Adynovi, Feiba, Recombinate, Hemofil/Immunate/Immunine, Takhzyro, Livtencity, Elaprase, Replagal, Advate, Flexbumin, Vpriv, Gammagard Liquid/Kiovig, Hyqvia, Cuvitru, Exkivity, Ninlaro, Velcade, Azilva-F, Lotriga, Iclusig, Leuplin/Enantone, Adcetris, vyvanse/elvanse, Trintellix, and Alunbrig brands. It has in-license agreement with BioMarin, Luxna Biotech, GlaxoSmithKline, Halozyme, and Kamada; collaboration with Neurocrine Biosciences, Inc., Seagen Inc., Anima Biotech, Denali Therapeutics, KSQ Therapeutics, Noile-Immune Biotech, Center for iPS Cell Research Application, Kyoto University (CiRA), and Charles River Laboratories; licensing agreement with Mirum Pharmaceuticals and Twist Bioscience, UCSD/Fortis Advisors, PeptiDream, MD Anderson Cancer Center, Teva Pharmaceutical Industries, and Xenetic Biosciences; collaboration and licensing agreement with Arrowhead Pharmaceuticals Inc., Engitix, Genevant Sciences Corporation, Sosei Heptares, Zedira/Dr. Falk Pharma, Exelixis, Inc., GlaxoSmithKline, Heidelberg Pharma, HUTCHMED, Presage Biosciences, Codexis, Inc., Ensoma, Envozyne, KM Biologics, and Selecta BioScience, and Ovid Therapeutics Inc.; and collaboration with ZEDIRA GmbH and Dr. Falk Pharma GmbH. It has research collaboration and licensing agreement with Crescendo Biologics, Code Bio, Immusoft, Poseida Therapeutics, and Selecta Biosciences. The company was founded in 1781 and is headquartered in Tokyo, Japan.