Analyzing CannTrust (OTCMKTS:CNTTF) & Vera Therapeutics (NASDAQ:VERA)

CannTrust (OTCMKTS:CNTTF) and Vera Therapeutics (NASDAQ:VERA) are both medical companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

0.1% of CannTrust shares are held by institutional investors. Comparatively, 99.2% of Vera Therapeutics shares are held by institutional investors. 21.7% of Vera Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for CannTrust and Vera Therapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CannTrust	0	0	0	0	0.00
Vera Therapeutics	0	1	6	2	3.11

Vera Therapeutics has a consensus target price of $63.50, suggesting a potential upside of 93.72%. Given Vera Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Vera Therapeutics is more favorable than CannTrust.

Profitability

This table compares CannTrust and Vera Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CannTrust	N/A	N/A	N/A
Vera Therapeutics	N/A	-50.13%	-39.50%

Earnings & Valuation

This table compares CannTrust and Vera Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CannTrust	$15.96 million	0.00	$7.39 million	$0.07	N/A
Vera Therapeutics	N/A	N/A	-$95.99 million	($2.61)	-12.56

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

Risk and Volatility

CannTrust has a beta of 4.52, suggesting that its share price is 352% more volatile than the S&P 500. Comparatively, Vera Therapeutics has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Summary

CannTrust beats Vera Therapeutics on 7 of the 13 factors compared between the two stocks.

About CannTrust

CannTrust Holdings Inc. produces and distributes pharmaceutical grade medical cannabis products in Canada. It sells dried cannabis and oil extractions to the client based on the medication document provided by health care practitioner. The company has a partnership with Gold Coast University Hospital. CannTrust Holdings Inc. was incorporated in 2015 and is headquartered in Vaughan, Canada.

About Vera Therapeutics

Vera Therapeutics, Inc., a clinical stage biotechnology company, focuses on developing and commercializing treatments for patients with serious immunological diseases. Its lead product candidate is atacicept, a fusion protein self-administered as a subcutaneous injection that is in Phase III clinical trial for patients with immunoglobulin A nephropathy; and for treatment of lupus nephritis that is in Phase II clinical trial. It is also developing MAU868, a human monoclonal antibody for the treatment of BK viremia infections. The company was formerly known as Trucode Gene Repair, Inc. and changed its name to Vera Therapeutics, Inc. in April 2020. Vera Therapeutics, Inc. was incorporated in 2016 and is headquartered in Brisbane, California.