Scholar Rock (NASDAQ:SRRK) and Outlook Therapeutics (NASDAQ:OTLK) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Scholar Rock and Outlook Therapeutics, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Scholar Rock | 0 | 0 | 5 | 0 | 3.00 |
| Outlook Therapeutics | 0 | 0 | 4 | 0 | 3.00 |
Scholar Rock currently has a consensus price target of $61.60, suggesting a potential upside of 92.86%. Outlook Therapeutics has a consensus price target of $6.3333, suggesting a potential upside of 229.86%. Given Outlook Therapeutics' higher possible upside, analysts plainly believe Outlook Therapeutics is more favorable than Scholar Rock.
Institutional and Insider Ownership
61.9% of Scholar Rock shares are held by institutional investors. Comparatively, 3.0% of Outlook Therapeutics shares are held by institutional investors. 24.6% of Scholar Rock shares are held by company insiders. Comparatively, 4.0% of Outlook Therapeutics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Scholar Rock has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Outlook Therapeutics has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Earnings and Valuation
This table compares Scholar Rock and Outlook Therapeutics' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Scholar Rock | $20.49 million | 52.22 | $-51,000,000.00 | ($1.85) | -16.88 |
| Outlook Therapeutics | $8.15 million | 38.56 | $-35,240,000.00 | ($0.67) | -2.70 |
Outlook Therapeutics has lower revenue, but higher earnings than Scholar Rock. Scholar Rock is trading at a lower price-to-earnings ratio than Outlook Therapeutics, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Scholar Rock and Outlook Therapeutics' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Scholar Rock | -365.84% | -80.16% | -41.33% |
| Outlook Therapeutics | N/A | N/A | -148.04% |
Summary
Outlook Therapeutics beats Scholar Rock on 7 of the 13 factors compared between the two stocks.
