Financial Contrast: TerrAscend (OTCMKTS:TSNDF) vs. LENSAR (NASDAQ:LNSR)
by Kim Johansen · The Markets DailyLENSAR (NASDAQ:LNSR – Get Free Report) and TerrAscend (OTCMKTS:TSNDF – Get Free Report) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Valuation & Earnings
This table compares LENSAR and TerrAscend”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LENSAR | $60.26 million | 1.30 | -$34.28 million | ($0.33) | -19.30 |
| TerrAscend | $260.56 million | 0.59 | -$81.33 million | ($0.11) | -4.50 |
LENSAR has higher earnings, but lower revenue than TerrAscend. LENSAR is trading at a lower price-to-earnings ratio than TerrAscend, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for LENSAR and TerrAscend, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LENSAR | 1 | 0 | 2 | 0 | 2.33 |
| TerrAscend | 0 | 1 | 0 | 0 | 2.00 |
LENSAR presently has a consensus target price of $11.33, suggesting a potential upside of 77.92%. Given LENSAR’s stronger consensus rating and higher possible upside, analysts plainly believe LENSAR is more favorable than TerrAscend.
Volatility and Risk
LENSAR has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, TerrAscend has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.
Profitability
This table compares LENSAR and TerrAscend’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LENSAR | 57.57% | -529.08% | 50.03% |
| TerrAscend | -31.01% | -32.93% | -5.49% |
Insider & Institutional Ownership
40.2% of LENSAR shares are held by institutional investors. Comparatively, 5.8% of TerrAscend shares are held by institutional investors. 65.8% of LENSAR shares are held by company insiders. Comparatively, 31.9% of TerrAscend shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
LENSAR beats TerrAscend on 9 of the 14 factors compared between the two stocks.
About LENSAR
LENSAR, Inc., a commercial-stage medical device company, focuses on designing, developing, and marketing a femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. It offers LENSAR Laser System that incorporates a range of proprietary technologies designed to assist the surgeon in obtaining visual outcomes, efficiency, and reproducibility by providing imaging, procedure planning, design, and precision. The company also offers ALLY Adaptive Cataract Treatment System, a platform design to femtosecond laser technology features that enhanced laser capabilities into a single small unit that allows surgeons to perform a femtosecond laser assisted cataract procedure in a single operating room. LENSAR, Inc. was incorporated in 2004 and is headquartered in Orlando, Florida.
About TerrAscend
TerrAscend Corp. cultivates, processes, and sells medical and adult use cannabis in Canada and the United States. The company produces and distributes hemp-derived wellness products to retail locations; and manufactures vaporizables, concentrates, topicals, tinctures and edibles. It also operates retail dispensaries under the Apothecarium and State Flower brand names. The company was incorporated in 2017 and is headquartered in Mississauga, Canada.