Financial Analysis: Jushi (OTCMKTS:JUSHF) and Beta Bionics (NASDAQ:BBNX)

Jushi (OTCMKTS:JUSHF) and Beta Bionics (NASDAQ:BBNX) are both small-cap healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Jushi and Beta Bionics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jushi	$262.91 million	0.32	-$68.59 million	($0.28)	-1.48
Beta Bionics	$127.27 million	6.64	-$73.20 million	($1.84)	-8.45

Jushi has higher revenue and earnings than Beta Bionics. Beta Bionics is trading at a lower price-to-earnings ratio than Jushi, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Jushi and Beta Bionics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jushi	0	0	1	0	3.00
Beta Bionics	1	4	9	1	2.67

Beta Bionics has a consensus target price of $23.69, indicating a potential upside of 52.36%. Given Beta Bionics’ higher possible upside, analysts clearly believe Beta Bionics is more favorable than Jushi.

Profitability

This table compares Jushi and Beta Bionics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jushi	-19.98%	N/A	-12.88%
Beta Bionics	-65.31%	-27.33%	-24.28%

Volatility and Risk

Jushi has a beta of -0.7, meaning that its stock price is 170% less volatile than the S&P 500. Comparatively, Beta Bionics has a beta of 3.39, meaning that its stock price is 239% more volatile than the S&P 500.

Institutional and Insider Ownership

21.7% of Jushi shares are held by institutional investors. 23.1% of Jushi shares are held by insiders. Comparatively, 5.3% of Beta Bionics shares are held 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.

Summary

Jushi beats Beta Bionics on 10 of the 15 factors compared between the two stocks.

About Jushi

Jushi Holdings Inc., a vertically integrated cannabis company, engages in the cultivation, processing, retail, and distribution of cannabis for medical and adult-use markets. The company offers flower, extracts, concentrates, edibles, oil, pre-rolls, tinctures, capsules, softgels, cannabis-infused gummies and ultra-premium chocolate, and topicals products, as well as vaporization devices and cartridges under The Bank, The Lab, Nira+ Medicinals, Sèchè, Tasteology, and Hijinks brands. It is also involved in the bulk wholesale of refined cannabinoids and terpenes. In addition, the company operates medical cannabis dispensaries under the BEYOND/HELLO, Nature’s Remedy, and NuLeaf brands. It markets its products to local dispensaries and large multi-state operators. The company is headquartered in Boca Raton, Florida.

About Beta Bionics

Beta Bionics, Inc. is a commercial-stage medical device company. It engages in the design, development, and commercialization of solutions for insulin-requiring people with diabetes. The company was founded by Edward R. Damiano on October 21, 2015 and is headquartered in Irvine, CA.