Critical Analysis: Opus Genetics (NASDAQ:IRD) and CannaPharmaRX (OTCMKTS:CPMD)

Opus Genetics (NASDAQ:IRD) and CannaPharmaRX (OTCMKTS:CPMD) are both small-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Volatility and Risk

Opus Genetics has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500. Comparatively, CannaPharmaRX has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500.

Profitability

This table compares Opus Genetics and CannaPharmaRX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Opus Genetics	-324.45%	-63.65%	-56.94%
CannaPharmaRX	N/A	N/A	-41.99%

Earnings and Valuation

This table compares Opus Genetics and CannaPharmaRX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Opus Genetics	$13.65 million	3.40	-$9.99 million	($2.10)	-0.49
CannaPharmaRX	N/A	N/A	$3.69 million	($0.02)	-0.25

CannaPharmaRX has lower revenue, but higher earnings than Opus Genetics. Opus Genetics is trading at a lower price-to-earnings ratio than CannaPharmaRX, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

15.0% of Opus Genetics shares are owned by institutional investors. 6.6% of Opus Genetics shares are owned by company insiders. Comparatively, 1.3% of CannaPharmaRX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Opus Genetics and CannaPharmaRX, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Opus Genetics	0	0	3	0	3.00
CannaPharmaRX	0	0	0	0	0.00

Opus Genetics presently has a consensus target price of $7.33, indicating a potential upside of 618.95%. Given Opus Genetics’ stronger consensus rating and higher possible upside, analysts plainly believe Opus Genetics is more favorable than CannaPharmaRX.

Summary

CannaPharmaRX beats Opus Genetics on 7 of the 13 factors compared between the two stocks.

About Opus Genetics

Opus Genetics Inc. is a clinical-stage ophthalmic biopharmaceutical company, focuses on developing and commercializing therapies for the treatment of unmet needs of patients with refractive and retinal eye disorders. Opus Genetics Inc., formerly known as Ocuphire Pharma Inc., is based in Farmington Hills, Michigan.

About CannaPharmaRX

CannaPharmaRX, Inc. operates in the cannabis industry in Canada. It evaluates, negotiates, acquires, and develops various cannabis cultivation projects. The company was incorporated in 1998 and is based in Calgary, Canada.