Reviewing Enanta Pharmaceuticals (NASDAQ:ENTA) & CytoDyn (OTCMKTS:CYDY)

CytoDyn (OTCMKTS:CYDY) and Enanta Pharmaceuticals (NASDAQ:ENTA) are both small-cap medical companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Valuation & Earnings

This table compares CytoDyn and Enanta Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CytoDyn	N/A	N/A	$3.74 million	($0.01)	-29.00
Enanta Pharmaceuticals	$65.32 million	6.15	-$81.89 million	($3.83)	-3.63

CytoDyn has higher earnings, but lower revenue than Enanta Pharmaceuticals. CytoDyn is trading at a lower price-to-earnings ratio than Enanta Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CytoDyn and Enanta Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CytoDyn	N/A	N/A	-132.89%
Enanta Pharmaceuticals	-125.36%	-93.76%	-26.13%

Insider & Institutional Ownership

5.1% of CytoDyn shares are owned by institutional investors. Comparatively, 95.0% of Enanta Pharmaceuticals shares are owned by institutional investors. 1.0% of CytoDyn shares are owned by insiders. Comparatively, 13.9% of Enanta Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

CytoDyn has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Enanta Pharmaceuticals has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for CytoDyn and Enanta Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CytoDyn	0	0	0	0	0.00
Enanta Pharmaceuticals	1	0	6	0	2.71

Enanta Pharmaceuticals has a consensus target price of $20.33, suggesting a potential upside of 46.18%. Given Enanta Pharmaceuticals’ stronger consensus rating and higher probable upside, analysts clearly believe Enanta Pharmaceuticals is more favorable than CytoDyn.

Summary

Enanta Pharmaceuticals beats CytoDyn on 8 of the 13 factors compared between the two stocks.

About CytoDyn

CytoDyn Inc., a clinical-stage biotechnology company, engages in the development of treatments for multiple therapeutic indications. The company is involved in the clinical development of leronlimab, a novel humanized monoclonal antibody targeting the C-C chemokine receptor type 5 receptor in the areas of COVID-19, human immunodeficiency virus (HIV), Metabolic dysfunction-associated steatohepatitis (MASH), and solid tumors in oncology, such as metastatic triple-negative breast cancer. Its leronlimab is currently under phase 2 development for the treatment of NASH, HIV- NASH, and solid tumors, as well as under pre-clinical development for the treatment of HIV-PrEP and HIV-Cure. The company was formerly known as RexRay Corporation. CytoDyn Inc. was incorporated in 2002 and is based in Vancouver, Washington.

About Enanta Pharmaceuticals

Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its product pipeline comprises EDP-514, which is in phase 1b clinical development for the treatment of chronic infection with hepatitis B virus or HBV; EDP-938 and EDP-323, which is in phase II clinical development for the treatment of respiratory syncytial virus; EDP-235, which is in phase II clinical development for the treatment of human coronaviruses; and Glecaprevir, which is in the market for the treatment of chronic infection with hepatitis C virus or HCV. The company has a collaborative development and license agreement with Abbott Laboratories to develop, manufacture, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. Enanta Pharmaceuticals, Inc. was incorporated in 1995 and is headquartered in Watertown, Massachusetts.