Nabriva Therapeutics (NASDAQ:NBRV) and Lumos Pharma (NASDAQ:LUMO) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.
Institutional and Insider Ownership
23.7% of Nabriva Therapeutics shares are owned by institutional investors. Comparatively, 43.8% of Lumos Pharma shares are owned by institutional investors. 2.8% of Nabriva Therapeutics shares are owned by company insiders. Comparatively, 15.9% of Lumos Pharma shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Nabriva Therapeutics and Lumos Pharma's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Nabriva Therapeutics | -1,682.55% | -129.80% | -71.67% |
| Lumos Pharma | -2,053.30% | -10.58% | -7.83% |
Volatility & Risk
Nabriva Therapeutics has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Lumos Pharma has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.
Valuation and Earnings
This table compares Nabriva Therapeutics and Lumos Pharma's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Nabriva Therapeutics | $9.48 million | 40.92 | $-82,760,000.00 | ($11.20) | -0.14 |
| Lumos Pharma | $940,000.00 | 106.37 | $-42,990,000.00 | ($9.27) | -1.29 |
Lumos Pharma has lower revenue, but higher earnings than Nabriva Therapeutics. Lumos Pharma is trading at a lower price-to-earnings ratio than Nabriva Therapeutics, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Nabriva Therapeutics and Lumos Pharma, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Nabriva Therapeutics | 0 | 1 | 1 | 0 | 2.50 |
| Lumos Pharma | 0 | 0 | 6 | 0 | 3.00 |
Nabriva Therapeutics presently has a consensus price target of $6.00, indicating a potential upside of 287.10%. Lumos Pharma has a consensus price target of $33.50, indicating a potential upside of 179.17%. Given Nabriva Therapeutics' higher probable upside, research analysts clearly believe Nabriva Therapeutics is more favorable than Lumos Pharma.
Summary
Lumos Pharma beats Nabriva Therapeutics on 9 of the 14 factors compared between the two stocks.
