Avadel Pharmaceuticals (NASDAQ:AVDL – Get Free Report) and Bright Minds Biosciences (NASDAQ:DRUG – Get Free Report) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Valuation & Earnings
This table compares Avadel Pharmaceuticals and Bright Minds Biosciences’ revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Avadel Pharmaceuticals | $95.15 million | 16.10 | -$160.28 million | ($1.86) | -8.57 |
Bright Minds Biosciences | N/A | N/A | -$5.47 million | ($1.01) | -1.06 |
Bright Minds Biosciences has lower revenue, but higher earnings than Avadel Pharmaceuticals. Avadel Pharmaceuticals is trading at a lower price-to-earnings ratio than Bright Minds Biosciences, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Avadel Pharmaceuticals | 0 | 0 | 7 | 0 | 3.00 |
Bright Minds Biosciences | 0 | 0 | 0 | 0 | N/A |
Avadel Pharmaceuticals currently has a consensus price target of $24.57, suggesting a potential upside of 54.15%. Given Avadel Pharmaceuticals’ higher probable upside, analysts plainly believe Avadel Pharmaceuticals is more favorable than Bright Minds Biosciences.
Insider & Institutional Ownership
69.2% of Avadel Pharmaceuticals shares are owned by institutional investors. Comparatively, 40.5% of Bright Minds Biosciences shares are owned by institutional investors. 4.8% of Avadel Pharmaceuticals shares are owned by insiders. Comparatively, 42.7% of Bright Minds Biosciences shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Avadel Pharmaceuticals and Bright Minds Biosciences’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Avadel Pharmaceuticals | -284.42% | -139.72% | -79.53% |
Bright Minds Biosciences | N/A | -80.64% | -73.04% |
Risk and Volatility
Avadel Pharmaceuticals has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Bright Minds Biosciences has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
Summary
Bright Minds Biosciences beats Avadel Pharmaceuticals on 8 of the 12 factors compared between the two stocks.
About Avadel Pharmaceuticals
Avadel Pharmaceuticals plc operates as a biopharmaceutical company in the United States. Its lead product candidate is LUMRYZ, a formulation of sodium oxybate, which is in a Phase 3 clinical trial for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals plc in January 2017. Avadel Pharmaceuticals plc was incorporated in 2015 and is headquartered in Dublin, Ireland.
About Bright Minds Biosciences
Bright Minds Biosciences Inc., a biotechnology company, develops therapeutics to improve the lives of patients with severe and life-altering diseases in the United States. Its portfolio of selective 5-HT receptor agonists includes 5-HT2C, 5-HT2A, and 5-HT2C/A for the treatment of epilepsy, pain, and neuropsychiatry; and BMB-101 which completes phase 1 trial for undisclosed seizure disorder. The company also developing BMB-202 for the treatment of depression, anxiety, and PTSD; and BMB-201 for the treatment of anxiety. It has collaboration with National Institutes of Health for the treatment of epilepsy; University of Texas Medical Branch to treat impulse control disorders, such as binge eating; and Medical College of Wisconsin. Bright Minds Biosciences Inc. was founded in 2017 and is headquartered in New York, New York.
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