Seres Therapeutics (NASDAQ: MCRB) and Ovid Therapeutc (NASDAQ:OVID) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

74.8% of Seres Therapeutics shares are held by institutional investors. Comparatively, 32.4% of Ovid Therapeutc shares are held by institutional investors. 41.9% of Seres Therapeutics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Seres Therapeutics and Ovid Therapeutc’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seres Therapeutics $22.08 million 18.42 -$92.65 million ($2.41) -4.17
Ovid Therapeutc N/A N/A -$57.87 million N/A N/A

Ovid Therapeutc has higher revenue, but lower earnings than Seres Therapeutics.

Profitability

This table compares Seres Therapeutics and Ovid Therapeutc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seres Therapeutics -441.38% -80.21% -37.80%
Ovid Therapeutc N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Seres Therapeutics and Ovid Therapeutc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seres Therapeutics 0 0 9 0 3.00
Ovid Therapeutc 0 0 4 0 3.00

Seres Therapeutics presently has a consensus price target of $18.75, suggesting a potential upside of 86.75%. Ovid Therapeutc has a consensus price target of $23.50, suggesting a potential upside of 262.65%. Given Ovid Therapeutc’s higher possible upside, analysts plainly believe Ovid Therapeutc is more favorable than Seres Therapeutics.

Summary

Ovid Therapeutc beats Seres Therapeutics on 5 of the 9 factors compared between the two stocks.

About Seres Therapeutics

Seres Therapeutics, Inc. is a microbiome therapeutics platform company. The Company is engaged in developing a class of biological drugs, which is referred as Ecobiotic microbiome therapeutics. The Company’s drugs are designed to restore health by repairing the function of a dysbiotic microbiome. The Company is focused on implementing its microbiome therapeutics platform to develop Ecobiotic microbiome therapeutics that treats dysbiosis in the colonic microbiome. SER-109 is its lead product candidate, which is designed to prevent further recurrences of Clostridium difficile infection (CDI). The Company is developing additional product candidates, including SER-262 to prevent an initial recurrence of primary CDI; SER-287 and SER-301, to treat inflammatory bowel disease (IBD), including ulcerative colitis, and SER-155 to treat enteric bacterial pathogens.

About Ovid Therapeutc

Ovid Therapeutics Inc. (Ovid) is a biopharmaceutical company. The Company is engaged in developing medicines for patients and families living with rare neurological disorders. Its lead drug candidate is OV101. The Company’s second lead drug candidate is OV935. OV101 (gaboxadol) is a delta-selective GABAA receptor agonist. Ovid is developing OV101 for use in both Angelman syndrome and Fragile X syndrome to potentially restore tonic inhibition and relieve several of the symptoms of these disorders. Ovid has initiated the Phase II STARS trial of OV101 in adults with Angelman syndrome and a Phase I trial in adolescents with Angelman syndrome or Fragile X syndrome. Ovid is also developing OV935 in collaboration with Takeda Pharmaceutical Company Limited for the treatment of rare epileptic encephalopathies.

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