Innoviva (NASDAQ: INVA) and Evoke Pharma (NASDAQ:EVOK) are both small-cap medical companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Earnings & Valuation

This table compares Innoviva and Evoke Pharma’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Innoviva $175.98 million 8.59 $142.91 million $0.78 17.73
Evoke Pharma N/A N/A N/A ($0.97) -3.30

Innoviva has higher revenue and earnings than Evoke Pharma. Evoke Pharma is trading at a lower price-to-earnings ratio than Innoviva, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Innoviva has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500. Comparatively, Evoke Pharma has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Innoviva and Evoke Pharma, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innoviva 1 2 1 0 2.00
Evoke Pharma 0 1 6 0 2.86

Innoviva presently has a consensus target price of $13.00, indicating a potential downside of 6.00%. Evoke Pharma has a consensus target price of $8.86, indicating a potential upside of 176.79%. Given Evoke Pharma’s stronger consensus rating and higher probable upside, analysts plainly believe Evoke Pharma is more favorable than Innoviva.

Profitability

This table compares Innoviva and Evoke Pharma’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innoviva 52.56% -27.37% 24.45%
Evoke Pharma N/A -167.16% -80.56%

Insider & Institutional Ownership

69.7% of Innoviva shares are held by institutional investors. Comparatively, 12.9% of Evoke Pharma shares are held by institutional investors. 1.6% of Innoviva shares are held by insiders. Comparatively, 20.0% of Evoke Pharma shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Innoviva beats Evoke Pharma on 7 of the 11 factors compared between the two stocks.

About Innoviva

Innoviva, Inc., formerly Theravance, Inc., is engaged in the development, commercialization and financial management of bio-pharmaceuticals. It focuses on the respiratory assets partnered with Glaxo Group Limited (GSK), including RELVAR/BREO ELLIPTA (fluticasone furoate (FF)/vilanterol (VI)) and ANORO ELLIPTA (umeclidinium bromide/vilanterol (UMEC/VI)). Under the Long-Acting Beta2 Agonist (LABA) Collaboration Agreement and the Strategic Alliance Agreement with GSK, the Company is eligible to receive the annual royalties from GSK on sales of RELVAR/BREO ELLIPTA. For other products combined with a LABA from the LABA collaboration, such as ANORO ELLIPTA, royalties are upward tiering and range from 6.5% to 10%. RELVAR/BREO is a once-a-day combination inhaled respiratory medicine consisting of a LABA (VI) and an inhaled corticosteroid (ICS), FF. ANORO ELLIPTA a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA.

About Evoke Pharma

Evoke Pharma, Inc. is a specialty pharmaceutical company. The Company is focused primarily on the development of drugs to treat gastrointestinal (GI) disorders and diseases. The Company is developing EVK-001, a metoclopramide nasal spray for the relief of symptoms associated with acute and recurrent diabetic gastroparesis in women. EVK-001 is a formulation of Metoclopramide drug, designed to provide systemic delivery of metoclopramide through intranasal administration. The Company has evaluated EVK-001 in a multicenter, randomized, double-blind, placebo-controlled parallel group, dose-ranging Phase IIb clinical trial. The Company has commenced a Phase III clinical trial of EVK-001 in female patients with symptoms associated with acute and recurrent diabetic gastroparesis. The Phase III clinical trial is a multicenter, randomized, double-blind, placebo-controlled, parallel-group study evaluating the efficacy, safety and population pharmacokinetics of EVK-001 in adult females.

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