InMed Pharmaceuticals (NASDAQ:INM) versus Rocket Pharmaceuticals (NASDAQ:RCKT) Head-To-Head Analysis

InMed Pharmaceuticals (NASDAQ:INM) and Rocket Pharmaceuticals (NASDAQ:RCKT) are both small-cap medical companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InMed Pharmaceuticals	$4.96 million	0.76	-$7.68 million	($13.91)	-0.38
Rocket Pharmaceuticals	N/A	N/A	-$245.60 million	($2.75)	-4.37

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for InMed Pharmaceuticals and Rocket Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InMed Pharmaceuticals	0	0	0	0	0.00
Rocket Pharmaceuticals	0	1	10	0	2.91

Rocket Pharmaceuticals has a consensus target price of $51.00, suggesting a potential upside of 324.29%. Given Rocket Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts plainly believe Rocket Pharmaceuticals is more favorable than InMed Pharmaceuticals.

Volatility and Risk

InMed Pharmaceuticals has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Rocket Pharmaceuticals has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares InMed Pharmaceuticals and Rocket Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InMed Pharmaceuticals	-137.41%	-65.74%	-53.57%
Rocket Pharmaceuticals	N/A	-62.62%	-54.17%

Insider and Institutional Ownership

20.1% of InMed Pharmaceuticals shares are owned by institutional investors. Comparatively, 98.4% of Rocket Pharmaceuticals shares are owned by institutional investors. 1.9% of InMed Pharmaceuticals shares are owned by insiders. Comparatively, 28.5% of Rocket Pharmaceuticals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Rocket Pharmaceuticals beats InMed Pharmaceuticals on 9 of the 13 factors compared between the two stocks.

About InMed Pharmaceuticals

InMed Pharmaceuticals Inc., a clinical stage pharmaceutical company, develops a pipeline of prescription-based products. The company operates through two segments, the InMed and the BayMedica. The InMed segment researches and develops cannabinoid-based pharmaceuticals products. The BayMedica segment develops proprietary manufacturing technologies to produce and sell rare cannabinoids for the health and wellness industry. Its prescription-based products include rare cannabinoids and novel cannabinoid analogs for the treatment of diseases with high unmet medical needs. The company’s lead product is INM-755, a cannabinol topical skin cream, completed Phase 2 clinical trial for the treatment of epidermolysis bullosa. It also develops INM-088, which is in preclinical studies for the treatment of glaucoma; and INM-900 for neurodegenerative diseases. In addition, the company offers IntegraSyn, an integrated biosynthesis-based manufacturing approach, for pharmaceutical-grade cannabinoids; and cannabichromene, cannabicitran, cannabidivarin, and tetrahydrocannabivarin. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada.

About Rocket Pharmaceuticals

Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a late-stage biotechnology company that focuses on developing gene therapies for rare and devastating diseases. It has three clinical-stage ex vivo lentiviral vector programs for fanconi anemia, a genetic defect in the bone marrow that reduces production of blood cells or promotes the production of faulty blood cells; leukocyte adhesion deficiency-I, a genetic disorder that causes the immune system to malfunction; and pyruvate kinase deficiency, a rare red blood cell autosomal recessive disorder that results in chronic non-spherocytic hemolytic anemia. The company also has a clinical stage in vivo adeno-associated virus program for Danon disease, a multi-organ lysosomal-associated disorder leading to early death due to heart failure; Plakophilin-2 Arrhythmogenic Cardiomyopathy, an inheritable cardiac disorder; and BAG3 Dilated Cardiomyopathy. It has license agreements with Centro de Investigaciones Energéticas, Medioambientales y Tecnológicas, Centro de Investigacion Biomedica En Red, and Fundacion Instituto de investigacion Sanitaria Fundacion Jimenez Diaz; UCL Business PLC; The Regents of the University of California; and REGENXBIO, Inc. Rocket Pharmaceuticals, Inc. was founded in 1999 and is headquartered in Cranbury, New Jersey.