AdaptHealth (NASDAQ:AHCO) versus IM Cannabis (NASDAQ:IMCC) Critical Survey

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

Profitability

This table compares IM Cannabis and AdaptHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IM Cannabis	-27.65%	-585.96%	-39.96%
AdaptHealth	-2.42%	2.76%	0.99%

Analyst Recommendations

This is a summary of current ratings for IM Cannabis and AdaptHealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IM Cannabis	1	0	0	0	1.00
AdaptHealth	1	2	5	0	2.50

AdaptHealth has a consensus price target of $14.29, suggesting a potential upside of 38.83%. Given AdaptHealth’s stronger consensus rating and higher probable upside, analysts clearly believe AdaptHealth is more favorable than IM Cannabis.

Insider & Institutional Ownership

7.7% of IM Cannabis shares are held by institutional investors. Comparatively, 82.7% of AdaptHealth shares are held by institutional investors. 5.9% of IM Cannabis shares are held by insiders. Comparatively, 2.0% of AdaptHealth 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.

Earnings & Valuation

This table compares IM Cannabis and AdaptHealth”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IM Cannabis	$50.91 million	0.02	-$8.10 million	($1.75)	-0.08
AdaptHealth	$3.24 billion	0.43	-$70.79 million	($0.62)	-16.60

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

Volatility and Risk

IM Cannabis has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, AdaptHealth has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Summary

AdaptHealth beats IM Cannabis on 10 of the 14 factors compared between the two stocks.

About IM Cannabis

IM Cannabis Corp. engages in breeding, growing, and supply of medical cannabis products in Israel and Germany. It offers cannabis flowers and strain-specific cannabis extracts under the IMC brand; and dried flower, pre-rolls, minis, and full spectrum extracts offerings under the WAGNERS and BLKMKT brands. The company serves medical patients. IM Cannabis Corp. is headquartered in Tel Aviv, Israel.

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.