Analyzing Grace Therapeutics (NASDAQ:GRCE) and Aytu BioPharma (NASDAQ:AYTU)

Grace Therapeutics (NASDAQ:GRCE) and Aytu BioPharma (NASDAQ:AYTU) are both small-cap medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Earnings and Valuation

This table compares Grace Therapeutics and Aytu BioPharma”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grace Therapeutics	N/A	N/A	-$9.57 million	($0.86)	-3.62
Aytu BioPharma	$66.38 million	0.34	-$13.56 million	($2.82)	-0.78

Grace Therapeutics has higher earnings, but lower revenue than Aytu BioPharma. Grace Therapeutics is trading at a lower price-to-earnings ratio than Aytu BioPharma, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grace Therapeutics and Aytu BioPharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grace Therapeutics	N/A	-20.36%	-18.09%
Aytu BioPharma	-20.43%	13.77%	3.28%

Institutional & Insider Ownership

6.1% of Grace Therapeutics shares are owned by institutional investors. Comparatively, 33.5% of Aytu BioPharma shares are owned by institutional investors. 11.1% of Grace Therapeutics shares are owned by insiders. Comparatively, 4.9% of Aytu BioPharma shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Grace Therapeutics has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Aytu BioPharma has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Grace Therapeutics and Aytu BioPharma, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grace Therapeutics	1	0	2	0	2.33
Aytu BioPharma	2	0	3	0	2.20

Grace Therapeutics currently has a consensus target price of $12.00, indicating a potential upside of 285.85%. Aytu BioPharma has a consensus target price of $9.17, indicating a potential upside of 314.78%. Given Aytu BioPharma’s higher possible upside, analysts clearly believe Aytu BioPharma is more favorable than Grace Therapeutics.

Summary

Aytu BioPharma beats Grace Therapeutics on 7 of the 13 factors compared between the two stocks.

About Grace Therapeutics

Grace Therapeutics Inc. is a late-stage biopharma company advancing GTx-104, its novel injectable formulation of nimodipine which addresses high unmet medical needs for a rare disease, aneurysmal subarachnoid hemorrhage. Grace Therapeutics Inc., formerly known as Acasti Pharma Inc., is based in Princeton, New Jersey.

About Aytu BioPharma

Aytu Biopharma, Inc. is a specialty pharmaceutical company, which engages in identifying, acquiring, and commercializing novel products. It operates through the Rx and Consumer Health segments. The RX segment consists of various prescription pharmaceutical products sold through third parties. The Consumer Health segment includes various consumer health products sold directly to consumers. Its products include Adzenys ER, Adzenys XR-ODT, Cotempla XR-ODT, Karbinal ER, Poly-Vi-Flor, Tri-Vi-Flor, Generic Tussionex, Tuzistra XR, and ZolpiMist. The company was founded on August 9, 2002 and is headquartered in Englewood, CO.