Lipocine (LPCN) versus Ovid Therapeutics (OVID) Critical Review

Lipocine (NASDAQ: LPCN) and Ovid Therapeutics (NASDAQ:OVID) are both small-cap healthcare companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.


This table compares Lipocine and Ovid Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lipocine N/A -74.63% -68.41%
Ovid Therapeutics N/A -86.05% -80.34%

Valuation & Earnings

This table compares Lipocine and Ovid Therapeutics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lipocine N/A N/A -$18.97 million ($0.96) -1.54
Ovid Therapeutics N/A N/A -$22.41 million ($3.87) -2.15

Ovid Therapeutics is trading at a lower price-to-earnings ratio than Lipocine, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

17.8% of Lipocine shares are held by institutional investors. Comparatively, 31.8% of Ovid Therapeutics shares are held by institutional investors. 11.3% of Lipocine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Lipocine and Ovid Therapeutics, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lipocine 0 1 3 0 2.75
Ovid Therapeutics 0 0 5 0 3.00

Lipocine presently has a consensus target price of $13.50, indicating a potential upside of 812.16%. Ovid Therapeutics has a consensus target price of $22.33, indicating a potential upside of 168.11%. Given Lipocine’s higher probable upside, analysts plainly believe Lipocine is more favorable than Ovid Therapeutics.


Lipocine beats Ovid Therapeutics on 7 of the 10 factors compared between the two stocks.

Lipocine Company Profile

Lipocine Inc. is a specialty pharmaceutical company. The Company is focused on applying its oral drug delivery technology for the development of pharmaceutical products in the area of men’s and women’s health. Its primary development programs are based on oral delivery solutions for bioavailable drugs. Its lead product candidate, LPCN 1021, is an oral testosterone replacement therapy (TRT), designed for twice-a-day dosing and is in Phase III testing. The Company’s additional pipeline candidates include LPCN 1111, an oral testosterone therapy product targeted for once daily dosing, which is in Phase II testing, and LPCN 1107, an oral therapy for the prevention of preterm birth, which is in Phase I testing. These products are based on its Lip’ral promicellar drug delivery technology platform. Lip’ral promicellar technology is a technology based on lipidic compositions, which form an optimal dispersed phase in the gastrointestinal environment for improved absorption of insoluble drugs.

Ovid Therapeutics Company Profile

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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