Critical Analysis: CannaPharmaRX (OTCMKTS:CPMD) & Savara (NASDAQ:SVRA)

Savara (NASDAQ:SVRA) and CannaPharmaRX (OTCMKTS:CPMD) are both small-cap medical companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Profitability

This table compares Savara and CannaPharmaRX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Savara	N/A	-46.27%	-35.94%
CannaPharmaRX	N/A	N/A	-141.66%

Valuation & Earnings

This table compares Savara and CannaPharmaRX’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Savara	N/A	N/A	-$54.70 million	($0.33)	-15.09
CannaPharmaRX	N/A	N/A	-$8.53 million	($0.03)	-0.49

Savara is trading at a lower price-to-earnings ratio than CannaPharmaRX, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

87.9% of Savara shares are owned by institutional investors. 4.6% of Savara shares are owned by company insiders. Comparatively, 1.3% of CannaPharmaRX shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Savara and CannaPharmaRX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Savara	0	0	5	0	3.00
CannaPharmaRX	0	0	0	0	N/A

Savara presently has a consensus target price of $8.20, suggesting a potential upside of 64.66%. Given Savara’s higher probable upside, equities research analysts clearly believe Savara is more favorable than CannaPharmaRX.

Risk and Volatility

Savara has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, CannaPharmaRX has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.

About Savara

Savara Inc., formerly Mast Therapeutics, Inc., is a clinical-stage pharmaceutical company. The Company is focused on the development and commercialization of novel therapies for the treatment of patients with rare respiratory diseases. Its pipeline includes AeroVanc, Molgradex and AIR001. AeroVanc is an inhaled formulation of vancomycin, which the Company is developing for the treatment of persistent methicillin-resistant Staphylococcus aureus, lung infection in cystic fibrosis patients. Molgradex is an inhaled formulation of recombinant human granulocyte-macrophage colony-stimulating factor. It is developing Molgradex for the treatment of autoimmune pulmonary alveolar proteinosis, a rare lung disease. AIR001 is a sodium nitrite solution for inhalation via nebulization. AIR001 is in Phase II clinical development for the treatment of heart failure with preserved ejection fraction, also known as diastolic heart failure or heart failure with preserved systolic function.

About CannaPharmaRX

CannaPharmaRX, Inc. operates in the cannabis industry in Canada. It evaluates, negotiates, acquires, and develops various cannabis cultivation projects. The company was incorporated in 1998 and is based in Calgary, Canada.