Neumora Therapeutics (NASDAQ:NMRA – Get Free Report) and Edesa Biotech (NASDAQ:EDSA – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.
Profitability
This table compares Neumora Therapeutics and Edesa Biotech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Neumora Therapeutics | N/A | -84.79% | -77.57% |
| Edesa Biotech | N/A | -187.01% | -78.72% |
Volatility & Risk
Neumora Therapeutics has a beta of 2.75, indicating that its stock price is 175% more volatile than the S&P 500. Comparatively, Edesa Biotech has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Neumora Therapeutics | 1 | 5 | 3 | 0 | 2.22 |
| Edesa Biotech | 0 | 0 | 0 | 1 | 4.00 |
Neumora Therapeutics currently has a consensus target price of $7.14, suggesting a potential upside of 203.95%. Edesa Biotech has a consensus target price of $5.00, suggesting a potential upside of 109.21%. Given Neumora Therapeutics’ higher probable upside, analysts plainly believe Neumora Therapeutics is more favorable than Edesa Biotech.
Insider and Institutional Ownership
47.7% of Neumora Therapeutics shares are owned by institutional investors. Comparatively, 5.5% of Edesa Biotech shares are owned by institutional investors. 26.8% of Neumora Therapeutics shares are owned by insiders. Comparatively, 22.6% of Edesa Biotech shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Neumora Therapeutics and Edesa Biotech”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Neumora Therapeutics | N/A | N/A | -$243.79 million | ($1.61) | -1.46 |
| Edesa Biotech | N/A | N/A | -$6.17 million | ($1.59) | -1.50 |
Edesa Biotech is trading at a lower price-to-earnings ratio than Neumora Therapeutics, indicating that it is currently the more affordable of the two stocks.
Summary
Neumora Therapeutics beats Edesa Biotech on 8 of the 12 factors compared between the two stocks.
About Neumora Therapeutics
Neumora Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutic treatments for brain diseases, neuropsychiatric disorders, and neurodegenerative diseases. The company develops navacaprant (NMRA-140), a novel once-daily oral kappa opioid receptor antagonist, which is in phase 3 clinical trials for the treatment of major depressive disorder. It also develops NMRA-511 that is in phase 1 clinical trials in patients with agitation associated with dementia due to Alzheimer’s disease; and NMRA-266, which is in the phase 1 clinical trial for the treatment of schizophrenia and other neuropsychiatric disorders. In addition, its preclinical phase product includes NMRA-NMDA for the treatment of schizophrenia; NMRA-CK1d, a CK1d inhibitor program for the treatment of amyotrophic lateral sclerosis; NMRA-NLRP3 for the treatment of certain neurodegenerative conditions; and NMRA-GCase for the treatment of Parkinson’s disease. The company was formerly known as RBNC Therapeutics, Inc. and changed its name to Neumora Therapeutics, Inc. in October 2021. Neumora Therapeutics, Inc. was incorporated in 2019 and is headquartered in Watertown, Massachusetts.
About Edesa Biotech
Edesa Biotech, Inc., a clinical-stage biopharmaceutical company, engages in the research and development, manufacture, and commercialization of pharmaceutical products for inflammatory and immune-related diseases. Its lead product candidates are EB05, a monoclonal antibody, which is in Phase 3 clinical study for the treatment of acute respiratory distress syndrome in Covid-19 patients; and EB01, a topical vanishing cream containing non-steroidal anti-inflammatory compound that has completed Phase 2b clinical study to treat chronic allergic contact dermatitis. The company also develops EB02, an extension of secretory phospholipase 2 anti-inflammatory cream for treating erythema, swelling, and exudation associated with hemorrhoids disease; and EB06, an anti- chemokine ligand 10 (CXCL10) monoclonal antibody in vitiligo. It has a collaboration agreement with NovImmune SA to develop monoclonal antibodies targeting products containing toll-like receptor 4 and CXCL10 for therapeutic, prophylactic, and diagnostic applications in humans and animals; and Yissum Research Development Company for the development of products for therapeutic, prophylactic, and diagnostic uses in topical dermal and anorectal applications, as well as for the use in dermatologic and gastrointestinal conditions. The company was founded in 2015 and is headquartered in Markham, Canada.
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