Analyzing Liquidia (NASDAQ:LQDA) and Inovio Pharmaceuticals (NASDAQ:INO)

Liquidia (NASDAQ:LQDA) and Inovio Pharmaceuticals (NASDAQ:INO) are both small-cap medical companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Liquidia has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Inovio Pharmaceuticals has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Liquidia and Inovio Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liquidia N/A -177.79% -93.76%
Inovio Pharmaceuticals -8,518.10% -78.17% -40.33%

Insider and Institutional Ownership

36.5% of Liquidia shares are owned by institutional investors. Comparatively, 36.0% of Inovio Pharmaceuticals shares are owned by institutional investors. 4.3% of Liquidia shares are owned by company insiders. Comparatively, 4.0% of Inovio Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Liquidia and Inovio Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liquidia 0 1 3 0 2.75
Inovio Pharmaceuticals 1 4 3 0 2.25

Liquidia presently has a consensus price target of $13.75, suggesting a potential upside of 422.81%. Inovio Pharmaceuticals has a consensus price target of $17.00, suggesting a potential upside of 160.34%. Given Liquidia’s stronger consensus rating and higher possible upside, research analysts clearly believe Liquidia is more favorable than Inovio Pharmaceuticals.

Earnings and Valuation

This table compares Liquidia and Inovio Pharmaceuticals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Liquidia $8.07 million 14.12 -$47.58 million ($2.59) -1.02
Inovio Pharmaceuticals $4.11 million 330.96 -$119.36 million ($1.16) -5.63

Liquidia has higher revenue and earnings than Inovio Pharmaceuticals. Inovio Pharmaceuticals is trading at a lower price-to-earnings ratio than Liquidia, indicating that it is currently the more affordable of the two stocks.

Summary

Liquidia beats Inovio Pharmaceuticals on 8 of the 13 factors compared between the two stocks.

About Liquidia

Liquidia Corp. operates as a holding company which through its subsidiary engages in developing and commercializing biopharmaceutical products. It engages in novel products development used in PRINT technology to transform the lives of patients. PRINT is a particle engineering platform that enables precise production of uniform drug particles designed to improve the safety, efficacy and performance of a wide range of therapies. The company was founded on June 28, 2020 and is headquartered in Morrisville, NC.

About Inovio Pharmaceuticals

Inovio Pharmaceuticals, Inc., a biotechnology company, focuses on the discovery, development, and commercialization of DNA medicines to treat and protect people from diseases associated with human papillomavirus (HPV), cancer, and infectious diseases. Its DNA medicines platform uses precisely designed SynCon optimized plasmids that have ability to help break the immune system's tolerance of cancerous or infected cells and facilitate cross-strain protection against unmatched and matched pathogen variants. The company is involved in conducting and planning clinical studies of its DNA medicines for HPV-associated precancers, including cervical, vulvar, and anal dysplasia; HPV-associated cancers, including head and neck, cervical, anal, penile, vulvar, and vaginal; other HPV-associated disorders, such as recurrent respiratory papillomatosis; glioblastoma multiforme; prostate cancer; HIV; Ebola; Middle East Respiratory Syndrome (MERS); Lassa fever; Zika virus; and the COVID-19 virus (coronavirus). Its partners and collaborators include ApolloBio Corp., AstraZeneca, Beijing Advaccine Biotechnology Co., Ltd., The Bill & Melinda Gates Foundation, Coalition for Epidemic Preparedness Innovations (CEPI), Defense Advanced Research Projects Agency (DARPA), HIV Vaccines Trial Network, International Vaccine Institute, Kaneka Eurogentec, Medical CBRN Defense Consortium (MCDC), National Cancer Institute, National Institutes of Health, National Institute of Allergy and Infectious Diseases, Ology Bioservices, the Parker Institute for Cancer Immunotherapy, Plumbline Life Sciences, Regeneron, Thermo Fisher Scientific, University of Pennsylvania, Walter Reed Army Institute of Research, and The Wistar Institute. The company also has an agreement with Richter-Helm BioLogics GmbH & Co. KG to support investigational DNA vaccine INO-4800, which is currently in Phase I clinical testing for COVID-19; and a partnership with International Vaccine Institute and Seoul National University Hospital. The company was founded in 1979 and is headquartered in Plymouth Meeting, Pennsylvania.

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