Otonomy (NASDAQ:OTIC) and Relmada Therapeutics (NASDAQ:RLMD) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Otonomy and Relmada Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Otonomy | -14,379.87% | -108.75% | -54.62% |
Relmada Therapeutics | N/A | -32.03% | -31.41% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Otonomy and Relmada Therapeutics, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Otonomy | 0 | 0 | 4 | 0 | 3.00 |
Relmada Therapeutics | 0 | 1 | 2 | 0 | 2.67 |
Otonomy presently has a consensus price target of $8.10, suggesting a potential upside of 179.31%. Relmada Therapeutics has a consensus price target of $63.3333, suggesting a potential upside of 88.16%. Given Otonomy's stronger consensus rating and higher possible upside, equities research analysts plainly believe Otonomy is more favorable than Relmada Therapeutics.
Risk & Volatility
Otonomy has a beta of 2.31, suggesting that its stock price is 131% more volatile than the S&P 500. Comparatively, Relmada Therapeutics has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Institutional and Insider Ownership
72.3% of Otonomy shares are owned by institutional investors. Comparatively, 64.3% of Relmada Therapeutics shares are owned by institutional investors. 16.1% of Otonomy shares are owned by insiders. Comparatively, 9.3% of Relmada Therapeutics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Otonomy and Relmada Therapeutics' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Otonomy | $600,000.00 | 233.54 | $-44,670,000.00 | ($1.45) | -2.00 |
Relmada Therapeutics | N/A | N/A | N/A | ($2.16) | -15.58 |
Relmada Therapeutics has lower revenue, but higher earnings than Otonomy. Relmada Therapeutics is trading at a lower price-to-earnings ratio than Otonomy, indicating that it is currently the more affordable of the two stocks.
Summary
Otonomy beats Relmada Therapeutics on 9 of the 12 factors compared between the two stocks.