Analyzing Cassava Sciences (NASDAQ:SAVA) and Reviva Pharmaceuticals (NASDAQ:RVPH)

Cassava Sciences (NASDAQ:SAVA) and Reviva Pharmaceuticals (NASDAQ:RVPH) are both small-cap medical companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for Cassava Sciences and Reviva Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cassava Sciences	1	1	0	0	1.50
Reviva Pharmaceuticals	1	0	7	1	2.89

Cassava Sciences currently has a consensus price target of $2.00, suggesting a potential downside of 8.26%. Reviva Pharmaceuticals has a consensus price target of $3.86, suggesting a potential upside of 1,156.81%. Given Reviva Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Reviva Pharmaceuticals is more favorable than Cassava Sciences.

Earnings and Valuation

This table compares Cassava Sciences and Reviva Pharmaceuticals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cassava Sciences	N/A	N/A	-$24.34 million	($2.19)	-1.00
Reviva Pharmaceuticals	N/A	N/A	-$29.92 million	($0.46)	-0.67

Cassava Sciences is trading at a lower price-to-earnings ratio than Reviva Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cassava Sciences and Reviva Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cassava Sciences	N/A	-63.39%	-49.81%
Reviva Pharmaceuticals	N/A	-20,501.80%	-187.50%

Volatility and Risk

Cassava Sciences has a beta of -1.08, meaning that its share price is 208% less volatile than the S&P 500. Comparatively, Reviva Pharmaceuticals has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500.

Institutional & Insider Ownership

38.1% of Cassava Sciences shares are held by institutional investors. Comparatively, 63.2% of Reviva Pharmaceuticals shares are held by institutional investors. 2.4% of Cassava Sciences shares are held by company insiders. Comparatively, 8.9% of Reviva Pharmaceuticals shares are held by company 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.

Summary

Reviva Pharmaceuticals beats Cassava Sciences on 9 of the 12 factors compared between the two stocks.

About Cassava Sciences

Cassava Sciences, Inc., a clinical stage biotechnology company, develops drugs for neurodegenerative diseases. Its lead therapeutic product candidate is simufilam, a small molecule drug, which is completed Phase 2 clinical trial; and investigational diagnostic product candidate is SavaDx, a blood-based biomarker/diagnostic to detect Alzheimer's disease. The company was formerly known as Pain Therapeutics, Inc. and changed its name to Cassava Sciences, Inc. in March 2019. Cassava Sciences, Inc. was incorporated in 1998 and is based in Austin, Texas.

About Reviva Pharmaceuticals

Reviva Pharmaceuticals Holdings, Inc., a biopharmaceutical company, discovers, develops, and commercializes next-generation therapeutics for diseases targeting unmet medical needs in the areas of central nervous system, respiratory, inflammatory, and cardiometabolic diseases. The company's lead product candidate comprises brilaroxazine (RP5063) for the treatment of various neuropsychiatric indications, including schizophrenia, bipolar disorder, major depressive disorder, attentiondeficit/hyperactivity disorder, behavioral and psychotic symptoms of dementia and Alzheimer's disease, and Parkinson's disease psychosis; in clinical development respiratory indications, such as pulmonary arterial hypertension and idiopathic pulmonary fibrosis; and in preclinical development for the treatment of psoriasis. It is also developing RP1208 for the treatment of depression and obesity. Reviva Pharmaceuticals Holdings, Inc. was founded in 2018 and is headquartered in Cupertino, California.