Redhill Biopharma (NASDAQ:RDHL) & ARS Pharmaceuticals (NASDAQ:SPRY) Critical Survey

ARS Pharmaceuticals (NASDAQ:SPRY) and Redhill Biopharma (NASDAQ:RDHL) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Risk & Volatility

ARS Pharmaceuticals has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Redhill Biopharma has a beta of 4.56, suggesting that its share price is 356% more volatile than the S&P 500.

Profitability

This table compares ARS Pharmaceuticals and Redhill Biopharma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARS Pharmaceuticals	-56.06%	-38.77%	-23.46%
Redhill Biopharma	N/A	N/A	N/A

Institutional & Insider Ownership

68.2% of ARS Pharmaceuticals shares are owned by institutional investors. Comparatively, 7.2% of Redhill Biopharma shares are owned by institutional investors. 33.5% of ARS Pharmaceuticals shares are owned by insiders. Comparatively, 6.8% of Redhill Biopharma shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for ARS Pharmaceuticals and Redhill Biopharma, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARS Pharmaceuticals	1	1	5	1	2.75
Redhill Biopharma	1	0	0	0	1.00

ARS Pharmaceuticals presently has a consensus price target of $31.80, suggesting a potential upside of 238.30%. Given ARS Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe ARS Pharmaceuticals is more favorable than Redhill Biopharma.

Valuation & Earnings

This table compares ARS Pharmaceuticals and Redhill Biopharma”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARS Pharmaceuticals	$89.15 million	10.42	$8.00 million	($0.81)	-11.60
Redhill Biopharma	$9.55 million	0.43	-$8.27 million	$486.75	0.00

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

Summary

ARS Pharmaceuticals beats Redhill Biopharma on 9 of the 15 factors compared between the two stocks.

About ARS Pharmaceuticals

ARS Pharmaceuticals, Inc., a biopharmaceutical company, develops treatments for severe allergic reactions. The company is developing neffy, a needle-free and low-dose intranasal epinephrine nasal spray for the emergency treatment of Type I allergic reactions, including anaphylaxis. It serves healthcare professionals, patients, and caregivers. ARS Pharmaceuticals, Inc. was founded in 2015 and is headquartered in San Diego, California.

About Redhill Biopharma

RedHill Biopharma Ltd., a specialty biopharmaceutical company, primarily focuses on gastrointestinal and infectious diseases. The company develops and commercializes Talicia for the treatment of H. pylori infection in adults; and Aemcolo for the treatment of travelers' diarrhea in adults. Its pipeline consists of five therapeutic candidates, which are in clinical development include opaganib for treating patients hospitalized with SARS-CoV-2 severe COVID-19 pneumonia, advanced unresectable cholangiocarcinoma, prostate cancer, and nuclear radiation protection; RHB-107 (upamostat) for treating outpatients infected with SARS-CoV-2 (COVID-19 disease) and advanced unresectable cholangiocarcinoma; RHB-104 for Crohn's disease; RHB-102 (Bekinda) for the treatment of acute gastroenteritis and gastritis, irritable bowel syndrome with diarrhea, and oncology support anti-emetic; and RHB-204 for pulmonary nontuberculous mycobacteria infections caused by mycobacterium avium complex. The company was incorporated in 2009 and is headquartered in Tel Aviv, Israel.