Lumos Pharma (NASDAQ:LUMO) and Relmada Therapeutics (NASDAQ:RLMD) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

43.8% of Lumos Pharma shares are owned by institutional investors. Comparatively, 64.3% of Relmada Therapeutics shares are owned by institutional investors. 15.9% of Lumos Pharma shares are owned by company insiders. Comparatively, 9.3% of Relmada Therapeutics shares are owned by company 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.

Valuation & Earnings

This table compares Lumos Pharma and Relmada Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lumos Pharma $940,000.00 108.86 -$42.99 million ($9.27) -1.33
Relmada Therapeutics N/A N/A N/A ($2.16) -16.65

Relmada Therapeutics has lower revenue, but higher earnings than Lumos Pharma. Relmada Therapeutics is trading at a lower price-to-earnings ratio than Lumos Pharma, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Lumos Pharma has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Relmada Therapeutics has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Lumos Pharma and Relmada Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lumos Pharma -2,053.30% -10.58% -7.83%
Relmada Therapeutics N/A -32.03% -31.41%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Lumos Pharma and Relmada Therapeutics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lumos Pharma 0 0 6 0 3.00
Relmada Therapeutics 0 1 2 0 2.67

Lumos Pharma presently has a consensus price target of $33.40, indicating a potential upside of 171.77%. Relmada Therapeutics has a consensus price target of $63.33, indicating a potential upside of 76.12%. Given Lumos Pharma’s stronger consensus rating and higher possible upside, analysts plainly believe Lumos Pharma is more favorable than Relmada Therapeutics.

Summary

Lumos Pharma beats Relmada Therapeutics on 9 of the 12 factors compared between the two stocks.

Lumos Pharma Company Profile

Lumos Pharma, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for severe, rare, and genetic diseases. Its lead therapeutic candidate LUM-201 is an oral growth hormone stimulating small molecule, which is in Phase 2 clinical trial for the treatment of pediatric growth hormone deficiency. The company has a licensing agreement with Ellipses Pharma Limited for the development of and rights to commercialize nanoparticle formulations of two therapeutics for oncology indications. Lumos Pharma, Inc. was founded in 2011 and is headquartered in Austin, Texas.

Relmada Therapeutics Company Profile

Relmada Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing drugs to treat central nervous system (CNS) diseases and other disorders in the United States. Its lead product candidate, d-Methadone, an oral agent, which is in Phase II clinical trial for the treatment of depression, neuropathic pain, and other potential CNS pathological conditions. The company is also developing LevoCap ER, an abuse resistant, sustained release dosage form of the opioid analgesic levorphanol; BuTab, an oral dosage form of the opioid analgesic buprenorphine; and MepiGel, an orphan drug designated topical formulation of the local anesthetic mepivacaine. Relmada Therapeutics, Inc. was founded in 2004 and is headquartered in New York, New York.

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