Aurora vs FSD Pharma Which Is More Profitable?

*In the volatile world of stock trading, Aurora Cannabis and FSD Pharma have emerged as two prominent players in the cannabis industry. Aurora, a well-established company with a strong presence in the market, has seen its stock price fluctuate in response to industry trends and regulatory changes. On the other hand, FSD Pharma, a smaller and lesser-known competitor, has shown potential for growth with its innovative approach to pharmaceutical development. This comparison of Aurora vs FSD Pharma stocks delves into the dynamics of the cannabis market and the factors influencing the performance of these two companies.*

Aurora or FSD Pharma?

When comparing Aurora and FSD Pharma, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aurora and FSD Pharma.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aurora has a dividend yield of 6.15%, while FSD Pharma has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%. On the other hand, FSD Pharma reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aurora P/E ratio at 14.96 and FSD Pharma's P/E ratio at -0.27. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aurora P/B ratio is 2.01 while FSD Pharma's P/B ratio is 0.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aurora has seen a 5-year revenue growth of -0.20%, while FSD Pharma's is -1.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aurora's ROE at 14.00% and FSD Pharma's ROE at -94.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are NT$66.60 for Aurora and $0.09 for FSD Pharma. Over the past year, Aurora's prices ranged from NT$66.20 to NT$77.00, with a yearly change of 16.31%. FSD Pharma's prices fluctuated between $0.09 and $109.19, with a yearly change of 125409.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.