Critical Analysis: ProPhase Labs (NASDAQ:PRPH) & NLS Pharmaceutics (NASDAQ:NCEL)

NLS Pharmaceutics (NASDAQ:NCEL) and ProPhase Labs (NASDAQ:PRPH) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Volatility and Risk

NLS Pharmaceutics has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, ProPhase Labs has a beta of -0.56, meaning that its share price is 156% less volatile than the S&P 500.

Profitability

This table compares NLS Pharmaceutics and ProPhase Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NLS Pharmaceutics	N/A	N/A	N/A
ProPhase Labs	-825.01%	-482.05%	-88.90%

Earnings & Valuation

This table compares NLS Pharmaceutics and ProPhase Labs”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NLS Pharmaceutics	N/A	N/A	-$1.98 million	N/A	N/A
ProPhase Labs	$5.06 million	0.18	-$53.36 million	($3.90)	-0.04

NLS Pharmaceutics has higher earnings, but lower revenue than ProPhase Labs.

Analyst Ratings

This is a breakdown of current ratings for NLS Pharmaceutics and ProPhase Labs, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NLS Pharmaceutics	1	0	0	0	1.00
ProPhase Labs	1	0	0	0	1.00

Institutional & Insider Ownership

9.4% of ProPhase Labs shares are held by institutional investors. 16.4% of NLS Pharmaceutics shares are held by company insiders. Comparatively, 9.6% of ProPhase Labs shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

NLS Pharmaceutics beats ProPhase Labs on 6 of the 8 factors compared between the two stocks.

About NLS Pharmaceutics

NLS Pharmaceutics AG, a clinical-stage biopharmaceutical company, engages in the discovery and development of therapies for patients with rare and complex central nervous system disorders. The company is focusing on the development of treatments for narcolepsy, idiopathic hypersomnia, and other rare sleep disorders, as well as neurodevelopmental disorders, such as attention deficit hyperactivity disorder (ADHD). Its lead product candidates include Quilience to treat excessive daytime sleepiness and cataplexy; and Nolazol for the treatment of ADHD. The company also developing NLS-4, a selective dopamine reuptake inhibitor to prevent rare sleep disorders; NLS-3, a repurposed reverse ester of methylphenidate for treatment of ADHD; NLS-8, a melatonin ML1A receptor agonist, improved scopolamine-induced amnesia; NLS-11, a norepinephrine and dopamine reuptake inhibitor and muscarinic M1, M2, M3 receptor antagonist; and NLS-12, a norepinephrine and dopamine reuptake inhibitor and muscarinic M4 receptor antagonist. NLS Pharmaceutics AG was incorporated in 2015 and is based in Zurich, Switzerland.

About ProPhase Labs

ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.