Head to Head Survey: Mereo BioPharma Group (NASDAQ:MREO) & Anebulo Pharmaceuticals (NASDAQ:ANEB)

Anebulo Pharmaceuticals (NASDAQ:ANEB) and Mereo BioPharma Group (NASDAQ:MREO) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation & Earnings

This table compares Anebulo Pharmaceuticals and Mereo BioPharma Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Anebulo Pharmaceuticals	N/A	N/A	-$8.48 million	($0.23)	-4.91
Mereo BioPharma Group	$10.00 million	8.12	-$43.25 million	($0.06)	-8.51

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Anebulo Pharmaceuticals and Mereo BioPharma Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Anebulo Pharmaceuticals	1	1	0	0	1.50
Mereo BioPharma Group	1	3	4	0	2.38

Anebulo Pharmaceuticals currently has a consensus price target of $3.00, indicating a potential upside of 165.49%. Mereo BioPharma Group has a consensus price target of $4.40, indicating a potential upside of 762.07%. Given Mereo BioPharma Group’s stronger consensus rating and higher possible upside, analysts clearly believe Mereo BioPharma Group is more favorable than Anebulo Pharmaceuticals.

Profitability

This table compares Anebulo Pharmaceuticals and Mereo BioPharma Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anebulo Pharmaceuticals	N/A	-67.78%	-64.08%
Mereo BioPharma Group	N/A	-74.96%	-63.73%

Volatility & Risk

Anebulo Pharmaceuticals has a beta of -0.81, meaning that its share price is 181% less volatile than the S&P 500. Comparatively, Mereo BioPharma Group has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Insider and Institutional Ownership

28.4% of Anebulo Pharmaceuticals shares are held by institutional investors. Comparatively, 62.8% of Mereo BioPharma Group shares are held by institutional investors. 80.6% of Anebulo Pharmaceuticals shares are held by company insiders. Comparatively, 5.5% of Mereo BioPharma Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Mereo BioPharma Group beats Anebulo Pharmaceuticals on 8 of the 12 factors compared between the two stocks.

About Anebulo Pharmaceuticals

Anebulo Pharmaceuticals, Inc., a clinical-stage biotechnology company, engages in developing solutions for people suffering from acute cannabinoid intoxication (ACI) and substance addiction. The company's lead product candidate is ANEB-001, a small molecule cannabinoid receptor antagonist, which is in a Phase II clinical trial to address the unmet medical need for a specific antidote for ACI. Anebulo Pharmaceuticals, Inc. was incorporated in 2020 and is based in Lakeway, Texas.

About Mereo BioPharma Group

Mereo BioPharma Group plc, a biopharmaceutical company, develops and commercializes therapeutics for the treatment of oncology and rare diseases in the United Kingdom, the United States, and internationally. It develops Etigilimab (MPH-313), an antibody T-cell immunoreceptor with Ig and ITIM domains, which is in Phase 1b clinical trial for the treatment of tumors. The company is also developing Navicixizumab (OMP-305B83), which has completed Phase 1b clinical trials for the treatment of the late line ovarian cancer; Acumapimod (BCT-197), a p38 MAP kinase inhibitor that is in Phase II clinical trials to treat acute exacerbations of chronic obstructive pulmonary disease; and Leflutrozole (BGS-649), an oral aromatase inhibitor for the treatment of hypogonadotropic hypogonadism which is in Phase 2 trials. In addition, it develops rare disease product candidates, including Setrusumab (BPS-804), an antibody for the treatment of osteogenesis imperfecta; and Alvelestat (MPH-966), an oral small molecule that is in Phase II clinical trial to treat Alpha-1 anti-trypsin deficiency. The company has a license agreement with Feng Biosciences for the development and commercialization of navicixizumab; license agreement with ReproNovo for the development and commercialization of leflutrozole; licensing agreement with AstraZeneca; and license agreement with Ultragenyx Pharmaceutical Inc. to develop and commercialize setrusumab. Mereo BioPharma Group plc was incorporated in 2015 and is headquartered in London, the United Kingdom.