Contrasting IM Cannabis (NASDAQ:IMCC) and Stryker (NYSE:SYK)
by Tristan Rich · The Markets DailyStryker (NYSE:SYK – Get Free Report) and IM Cannabis (NASDAQ:IMCC – Get Free Report) are both medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Volatility and Risk
Stryker has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, IM Cannabis has a beta of 2.32, suggesting that its stock price is 132% more volatile than the S&P 500.
Profitability
This table compares Stryker and IM Cannabis’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stryker | 12.92% | 24.41% | 11.25% |
| IM Cannabis | -21.24% | -301.99% | -26.81% |
Institutional and Insider Ownership
77.1% of Stryker shares are held by institutional investors. Comparatively, 7.7% of IM Cannabis shares are held by institutional investors. 5.9% of Stryker shares are held by insiders. Comparatively, 5.9% of IM Cannabis shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Stryker and IM Cannabis, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stryker | 0 | 5 | 14 | 0 | 2.74 |
| IM Cannabis | 1 | 0 | 0 | 0 | 1.00 |
Stryker currently has a consensus target price of $427.50, indicating a potential upside of 28.97%. Given Stryker’s stronger consensus rating and higher possible upside, equities analysts clearly believe Stryker is more favorable than IM Cannabis.
Earnings & Valuation
This table compares Stryker and IM Cannabis”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stryker | $25.12 billion | 5.05 | $3.25 billion | $8.40 | 39.46 |
| IM Cannabis | $39.17 million | 0.05 | -$7.72 million | ($1.41) | -0.24 |
Stryker has higher revenue and earnings than IM Cannabis. IM Cannabis is trading at a lower price-to-earnings ratio than Stryker, indicating that it is currently the more affordable of the two stocks.
Summary
Stryker beats IM Cannabis on 12 of the 14 factors compared between the two stocks.
About Stryker
Stryker Corporation operates as a medical technology company. The company operates through two segments, MedSurg and Neurotechnology, and Orthopaedics and Spine. The Orthopaedics and Spine segment provides implants for use in total joint replacements, such as hip, knee and shoulder, and trauma and extremities surgeries. This segment also offers spinal implant products comprising cervical and thoracolumbar systems that include fixation, minimally invasive and interbody systems used in spinal injury, complex spine and degenerative therapies. The MedSurg and Neurotechnology segment offers surgical equipment, and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, clinical communication and workflow solutions, and other medical device products that are used in various medical specialties, as well as patient and caregiver safety technologies. This segment also provides neurosurgical, neurovascular and craniomaxillofacial implant products, which include products used for minimally invasive endovascular procedures; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke; and craniomaxillofacial implant products, including cranial, maxillofacial, and chest wall devices, as well as dural substitutes and sealants. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 75 countries. Stryker Corporation was founded in 1941 and is headquartered in Portage, Michigan.
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.