Vireo Growth (OTCMKTS:VREOD) versus Veru (NASDAQ:VERU) Critical Review
by Kim Johansen · The Markets DailyVeru (NASDAQ:VERU – Get Free Report) and Vireo Growth (OTCMKTS:VREOD – Get Free Report) are both small-cap healthcare companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Earnings and Valuation
This table compares Veru and Vireo Growth”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veru | $16.89 million | 2.21 | -$22.73 million | ($0.69) | -3.17 |
| Vireo Growth | $268.77 million | 1.68 | -$68.11 million | ($3.30) | -3.02 |
Veru has higher earnings, but lower revenue than Vireo Growth. Veru is trading at a lower price-to-earnings ratio than Vireo Growth, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Veru has a beta of -1.21, meaning that its stock price is 221% less volatile than the S&P 500. Comparatively, Vireo Growth has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Veru and Vireo Growth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veru | 1 | 0 | 3 | 0 | 2.50 |
| Vireo Growth | 1 | 0 | 0 | 0 | 1.00 |
Veru presently has a consensus price target of $24.50, indicating a potential upside of 1,018.72%. Given Veru’s stronger consensus rating and higher probable upside, research analysts clearly believe Veru is more favorable than Vireo Growth.
Profitability
This table compares Veru and Vireo Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veru | N/A | -47.58% | -35.83% |
| Vireo Growth | -23.37% | -19.76% | -7.15% |
Insider and Institutional Ownership
47.2% of Veru shares are owned by institutional investors. 14.2% of Veru shares are owned by insiders. Comparatively, 3.8% of Vireo Growth shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Veru beats Vireo Growth on 9 of the 14 factors compared between the two stocks.
About Veru
Veru Inc., a late clinical stage biopharmaceutical company, focuses on developing medicines for treatment of metabolic diseases, oncology, and acute respiratory distress syndrome (ARDS). Its marketed products comprise FC2 female condom for the dual protection against unplanned pregnancy and the transmission of sexually transmitted infections. The company’s development program includes enobosarm, a selective androgen receptor modulator for treatment of augment fat loss and to prevent muscle loss in sarcopenic obese and overweight elderly patients; Enobosarm, a selective androgen receptor modulator for the treatment of AR+ ER+ HER2- metastatic breast cancer; and sabizabulin, a microtubule disruptor for the treatment of hospitalized patients with viral lung infection on oxygen support who are at high risk for viral induced ARDS and death. The company was formerly known as The Female Health Company and changed its name to Veru Inc. in July 2017. Veru Inc. was incorporated in 1971 and is headquartered in Miami, Florida.
About Vireo Growth
Goodness Growth Holdings, Inc. operates as a cannabis company in the United States. The company cultivates, processes, and distributes medical and adult-use cannabis products. It sells cannabis products through its network of Green Goods and other Goodness Growth branded retail dispensaries and third-party dispensaries in Maryland, Minnesota, and New York. The company was formerly known as Vireo Health International Inc. and changed its name to Goodness Growth Holdings, Inc. in June 2021. Goodness Growth Holdings, Inc. is headquartered in Minneapolis, Minnesota.