Equillium (NASDAQ:EQ) and OrganiGram (NASDAQ:OGI) are both small-cap medical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Equillium and OrganiGram, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Equillium | 0 | 0 | 3 | 0 | 3.00 |
OrganiGram | 0 | 8 | 4 | 0 | 2.33 |
Equillium presently has a consensus price target of $14.00, indicating a potential upside of 84.45%. OrganiGram has a consensus price target of $2.93, indicating a potential downside of 4.87%. Given Equillium's stronger consensus rating and higher probable upside, equities analysts plainly believe Equillium is more favorable than OrganiGram.
Profitability
This table compares Equillium and OrganiGram's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Equillium | N/A | -60.79% | -47.03% |
OrganiGram | -207.26% | -10.00% | -7.14% |
Volatility and Risk
Equillium has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, OrganiGram has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.
Earnings & Valuation
This table compares Equillium and OrganiGram's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Equillium | N/A | N/A | $-25,600,000.00 | ($1.47) | -5.16 |
OrganiGram | $64.61 million | 11.07 | $-101,290,000.00 | ($0.08) | -38.50 |
Equillium has higher earnings, but lower revenue than OrganiGram. OrganiGram is trading at a lower price-to-earnings ratio than Equillium, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
31.1% of Equillium shares are owned by institutional investors. Comparatively, 10.8% of OrganiGram shares are owned by institutional investors. 52.3% of Equillium shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Equillium beats OrganiGram on 7 of the 13 factors compared between the two stocks.