RedHill Biopharma (NASDAQ:RDHL) and Dynavax Technologies (NASDAQ:DVAX) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares RedHill Biopharma and Dynavax Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| RedHill Biopharma | -142.81% | -152.19% | -45.96% |
| Dynavax Technologies | -256.92% | -193.85% | -23.45% |
Analyst Ratings
This is a breakdown of recent recommendations for RedHill Biopharma and Dynavax Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| RedHill Biopharma | 0 | 0 | 3 | 0 | 3.00 |
| Dynavax Technologies | 0 | 0 | 4 | 0 | 3.00 |
RedHill Biopharma currently has a consensus target price of $20.00, indicating a potential upside of 181.69%. Dynavax Technologies has a consensus target price of $16.3333, indicating a potential upside of 48.62%. Given RedHill Biopharma's higher possible upside, equities analysts plainly believe RedHill Biopharma is more favorable than Dynavax Technologies.
Insider and Institutional Ownership
20.4% of RedHill Biopharma shares are held by institutional investors. Comparatively, 80.0% of Dynavax Technologies shares are held by institutional investors. 13.3% of Dynavax Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares RedHill Biopharma and Dynavax Technologies' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| RedHill Biopharma | $6.29 million | 52.37 | $-42,300,000.00 | ($1.40) | -5.07 |
| Dynavax Technologies | $35.22 million | 35.34 | $-152,600,000.00 | ($1.87) | -5.88 |
RedHill Biopharma has higher earnings, but lower revenue than Dynavax Technologies. Dynavax Technologies is trading at a lower price-to-earnings ratio than RedHill Biopharma, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
RedHill Biopharma has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Dynavax Technologies has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Summary
RedHill Biopharma beats Dynavax Technologies on 8 of the 13 factors compared between the two stocks.
