Analyzing Anavex Life Sciences Corp. (NASDAQ:AVXL) and ContraFect Corporation (CFRX)
Anavex Life Sciences Corp. (NASDAQ: AVXL) and ContraFect Corporation (NASDAQ:CFRX) are both small-cap medical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitabiliy, risk, institutional ownership, earnings, dividends and analyst recommendations.
Volatility & Risk
Anavex Life Sciences Corp. has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, ContraFect Corporation has a beta of -0.89, meaning that its share price is 189% less volatile than the S&P 500.
This table compares Anavex Life Sciences Corp. and ContraFect Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Anavex Life Sciences Corp.||N/A||-113.29%||-96.24%|
This is a summary of current ratings and target prices for Anavex Life Sciences Corp. and ContraFect Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Anavex Life Sciences Corp.||0||0||3||0||3.00|
Anavex Life Sciences Corp. presently has a consensus target price of $13.67, suggesting a potential upside of 246.87%. ContraFect Corporation has a consensus target price of $5.00, suggesting a potential upside of 284.62%. Given ContraFect Corporation’s higher probable upside, analysts clearly believe ContraFect Corporation is more favorable than Anavex Life Sciences Corp..
Valuation & Earnings
This table compares Anavex Life Sciences Corp. and ContraFect Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Anavex Life Sciences Corp.||N/A||N/A||-$14.20 million||($0.36)||-10.94|
|ContraFect Corporation||N/A||N/A||-$32.36 million||($0.77)||-1.69|
Anavex Life Sciences Corp. is trading at a lower price-to-earnings ratio than ContraFect Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
22.9% of Anavex Life Sciences Corp. shares are owned by institutional investors. Comparatively, 25.3% of ContraFect Corporation shares are owned by institutional investors. 11.6% of Anavex Life Sciences Corp. shares are owned by insiders. Comparatively, 9.3% of ContraFect Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Anavex Life Sciences Corp. beats ContraFect Corporation on 8 of the 10 factors compared between the two stocks.
Anavex Life Sciences Corp. Company Profile
Anavex Life Sciences Corp., is a clinical-stage biopharmaceutical company engaged in the development of drug candidates. The Company’s lead compounds include ANAVEX 2-73, ANAVEX PLUS, a combination of ANAVEX 2-73 with donepezil (Aricept), ANAVEX 19-144, ANAVEX 1-41, ANAVEX 7-1037, ANAVEX 3-71, ANAVEX 1079, ANAVEX 1519 and ANAVEX 1066 being developed to treat Alzheimer’s disease and other central nervous system (CNS) diseases. The Company’s SIGMACEPTOR Discovery Platform produced small molecule drug candidates with unique modes of action. Sigma receptors may be targets for therapeutics to combat many human diseases, including Alzheimer’s disease. When bound by the appropriate ligands, sigma receptors influence the functioning of multiple biochemical signals that are involved in the pathogenesis (origin or development) of disease.
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