Financial Analysis: Cresco Labs (OTCMKTS:CRLBF) & AdaptHealth (NASDAQ:AHCO)

AdaptHealth (NASDAQ:AHCO) and Cresco Labs (OTCMKTS:CRLBF) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings for AdaptHealth and Cresco Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdaptHealth	1	1	4	0	2.50
Cresco Labs	1	0	0	1	2.50

AdaptHealth currently has a consensus price target of $13.25, indicating a potential upside of 44.81%. Given AdaptHealth’s higher probable upside, equities research analysts plainly believe AdaptHealth is more favorable than Cresco Labs.

Institutional and Insider Ownership

82.7% of AdaptHealth shares are held by institutional investors. Comparatively, 0.1% of Cresco Labs shares are held by institutional investors. 1.6% of AdaptHealth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares AdaptHealth and Cresco Labs”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AdaptHealth	$3.24 billion	0.38	$90.42 million	($0.55)	-16.64
Cresco Labs	$724.34 million	0.49	-$74.44 million	($0.15)	-6.60

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

Risk and Volatility

AdaptHealth has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Cresco Labs has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Profitability

This table compares AdaptHealth and Cresco Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AdaptHealth	-2.18%	3.42%	1.23%
Cresco Labs	-7.79%	-14.25%	-3.90%

Summary

AdaptHealth beats Cresco Labs on 10 of the 14 factors compared between the two stocks.

About AdaptHealth

AdaptHealth Corp., together with its subsidiaries, sells home medical equipment (HME), medical supplies, and home and related services in the United States. The company provides sleep therapy equipment, supplies, and related services, such as CPAP and bi-PAP services to individuals suffering from obstructive sleep apnea; medical devices and supplies, including continuous glucose monitors and insulin pumps for the treatment of diabetes; HME to patients discharged from acute care and other facilities; oxygen and related chronic therapy services in the home; and other HME devices and supplies on behalf of chronically ill patients with wound care, urological, incontinence, ostomy, and nutritional supply needs. It also offers wheelchairs, hospital beds, oxygen concentrators, CPAP masks and related supplies, wound care supplies, diabetes management supplies, wheelchair cushion accessories, orthopedic bracing, breast pumps and supplies, walkers, commodes and canes, and nutritional and incontinence supplies. The company services beneficiaries of Medicare, Medicaid, and commercial insurance payors. The company is headquartered in Plymouth Meeting, Pennsylvania.

About Cresco Labs

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections and fruit-forward gummies under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. The company was incorporated in 1990 and is headquartered in Chicago, Illinois.