Analyzing Aytu BioPharma (NASDAQ:AYTU) and Grace Therapeutics (NASDAQ:GRCE)

Aytu BioPharma (NASDAQ:AYTU) and Grace Therapeutics (NASDAQ:GRCE) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Aytu BioPharma and Grace Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aytu BioPharma	-20.43%	13.77%	3.28%
Grace Therapeutics	N/A	-20.36%	-18.09%

Risk & Volatility

Aytu BioPharma has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Grace Therapeutics has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Aytu BioPharma and Grace Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aytu BioPharma	$66.38 million	0.33	-$13.56 million	($2.82)	-0.76
Grace Therapeutics	N/A	N/A	-$9.57 million	($0.86)	-3.55

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Aytu BioPharma and Grace Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aytu BioPharma	2	0	3	0	2.20
Grace Therapeutics	1	0	2	0	2.33

Aytu BioPharma currently has a consensus target price of $9.17, indicating a potential upside of 327.55%. Grace Therapeutics has a consensus target price of $12.00, indicating a potential upside of 293.44%. Given Aytu BioPharma’s higher probable upside, analysts plainly believe Aytu BioPharma is more favorable than Grace Therapeutics.

Institutional & Insider Ownership

33.5% of Aytu BioPharma shares are owned by institutional investors. Comparatively, 6.1% of Grace Therapeutics shares are owned by institutional investors. 4.9% of Aytu BioPharma shares are owned by company insiders. Comparatively, 11.1% of Grace Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Aytu BioPharma beats Grace Therapeutics on 7 of the 13 factors compared between the two stocks.

About Aytu BioPharma

Aytu Biopharma, Inc. is a specialty pharmaceutical company, which engages in identifying, acquiring, and commercializing novel products. It operates through the Rx and Consumer Health segments. The RX segment consists of various prescription pharmaceutical products sold through third parties. The Consumer Health segment includes various consumer health products sold directly to consumers. Its products include Adzenys ER, Adzenys XR-ODT, Cotempla XR-ODT, Karbinal ER, Poly-Vi-Flor, Tri-Vi-Flor, Generic Tussionex, Tuzistra XR, and ZolpiMist. The company was founded on August 9, 2002 and is headquartered in Englewood, CO.

About Grace Therapeutics

Grace Therapeutics Inc. is a late-stage biopharma company advancing GTx-104, its novel injectable formulation of nimodipine which addresses high unmet medical needs for a rare disease, aneurysmal subarachnoid hemorrhage. Grace Therapeutics Inc., formerly known as Acasti Pharma Inc., is based in Princeton, New Jersey.