Evofem Biosciences (NASDAQ:EVFM) and Rigel Pharmaceuticals (NASDAQ:RIGL) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Volatility and Risk
Evofem Biosciences has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500. Comparatively, Rigel Pharmaceuticals has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.
Earnings & Valuation
This table compares Evofem Biosciences and Rigel Pharmaceuticals' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Evofem Biosciences | N/A | N/A | $-80,030,000.00 | ($1.31) | -1.34 |
| Rigel Pharmaceuticals | $59.29 million | 9.35 | $-66,890,000.00 | ($0.40) | -8.15 |
Rigel Pharmaceuticals has higher revenue and earnings than Evofem Biosciences. Rigel Pharmaceuticals is trading at a lower price-to-earnings ratio than Evofem Biosciences, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
44.8% of Evofem Biosciences shares are held by institutional investors. Comparatively, 82.0% of Rigel Pharmaceuticals shares are held by institutional investors. 9.9% of Evofem Biosciences shares are held by insiders. Comparatively, 4.7% of Rigel Pharmaceuticals shares are held by 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.
Profitability
This table compares Evofem Biosciences and Rigel Pharmaceuticals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Evofem Biosciences | N/A | -259.47% | -111.70% |
| Rigel Pharmaceuticals | -26.25% | -44.96% | -20.08% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Evofem Biosciences and Rigel Pharmaceuticals, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Evofem Biosciences | 0 | 1 | 6 | 0 | 2.86 |
| Rigel Pharmaceuticals | 0 | 1 | 3 | 0 | 2.75 |
Evofem Biosciences currently has a consensus target price of $10.00, indicating a potential upside of 471.43%. Rigel Pharmaceuticals has a consensus target price of $8.3333, indicating a potential upside of 155.62%. Given Evofem Biosciences' stronger consensus rating and higher possible upside, research analysts clearly believe Evofem Biosciences is more favorable than Rigel Pharmaceuticals.
Summary
Rigel Pharmaceuticals beats Evofem Biosciences on 7 of the 13 factors compared between the two stocks.
