Theratechnologies (OTCMKTS:THERF) and Axovant Sciences (NASDAQ:AXON) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk and Volatility

Theratechnologies has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Axovant Sciences has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares Theratechnologies and Axovant Sciences’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Theratechnologies $45.18 million 4.75 -$4.66 million N/A N/A
Axovant Sciences N/A N/A -$221.57 million ($2.06) -2.11

Theratechnologies has higher revenue and earnings than Axovant Sciences.

Institutional & Insider Ownership

1.4% of Theratechnologies shares are owned by institutional investors. Comparatively, 7.6% of Axovant Sciences shares are owned by institutional investors. 6.0% of Axovant Sciences shares are owned by company 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.

Profitability

This table compares Theratechnologies and Axovant Sciences’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Theratechnologies -11.57% -14.31% -4.25%
Axovant Sciences N/A -416.05% -124.55%

Analyst Ratings

This is a summary of current recommendations for Theratechnologies and Axovant Sciences, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Theratechnologies 0 2 0 0 2.00
Axovant Sciences 0 0 1 0 3.00

Theratechnologies currently has a consensus target price of $6.00, suggesting a potential upside of 115.05%. Axovant Sciences has a consensus target price of $32.00, suggesting a potential upside of 637.33%. Given Axovant Sciences’ stronger consensus rating and higher possible upside, analysts plainly believe Axovant Sciences is more favorable than Theratechnologies.

Summary

Axovant Sciences beats Theratechnologies on 7 of the 11 factors compared between the two stocks.

About Theratechnologies

Theratechnologies Inc., a specialty pharmaceutical company, addresses unmet medical needs to promote healthy living and improve quality of life among HIV patients. It offers EGRIFTA, for the reduction of excess abdominal fat in HIV-infected patients with lipodystrophy in Canada and the United States; and Trogarz, an injection refers to ibalizumab for the treatment of multidrug resistant HIV-1 infected patients in the United States. The company was founded in 1993 and is headquartered in Montreal, Canada.

About Axovant Sciences

Axovant Sciences Ltd., a clinical-stage biopharmaceutical company, engages in acquisition, development, and commercialization of therapeutics in the fields of neurology and psychiatry in the United States and the European Union. It focuses on developing AXO-Lenti-PD, an in vivo lentiviral gene therapy investigational product candidate for the one-time treatment of Parkinson's disease. The company is also developing nelotanserin, a selective 5-HT2A receptor inverse agonist, which is in Phase II clinical trial for the treatment of visual hallucinations in patients with Lewy body dementia (LBD) and REM sleep behavior disorder in patients with LBD. In addition, it focuses on developing RVT-104, a combination of rivastigmine and a peripheral muscarinic receptor antagonist as treatments for patients with Alzheimer's disease or DLB. The company was formerly known as Roivant Neurosciences Ltd. and changed its name to Axovant Sciences Ltd. in March 2015. The company was founded in 2014 and is based in London, the United Kingdom. Axovant Sciences Ltd. is a subsidiary of Roivant Sciences Ltd.

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