Comparing Avid Bioservices (NASDAQ:CDMO) and Eliem Therapeutics (NASDAQ:ELYM)

Avid Bioservices (NASDAQ:CDMOGet Free Report) and Eliem Therapeutics (NASDAQ:ELYMGet Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Volatility & Risk

Avid Bioservices has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Eliem Therapeutics has a beta of -0.39, meaning that its share price is 139% less volatile than the S&P 500.

Insider and Institutional Ownership

97.2% of Avid Bioservices shares are held by institutional investors. Comparatively, 69.8% of Eliem Therapeutics shares are held by institutional investors. 3.1% of Avid Bioservices shares are held by company insiders. Comparatively, 4.7% of Eliem Therapeutics 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.

Profitability

This table compares Avid Bioservices and Eliem Therapeutics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avid Bioservices -101.07% -33.18% -8.45%
Eliem Therapeutics N/A -47.03% -45.97%

Valuation & Earnings

This table compares Avid Bioservices and Eliem Therapeutics”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Bioservices $139.91 million 5.71 -$140.75 million ($2.39) -5.23
Eliem Therapeutics N/A N/A -$35.12 million ($0.53) -2.23

Eliem Therapeutics has lower revenue, but higher earnings than Avid Bioservices. Avid Bioservices is trading at a lower price-to-earnings ratio than Eliem Therapeutics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Avid Bioservices and Eliem Therapeutics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Bioservices 0 4 0 0 2.00
Eliem Therapeutics 0 0 0 0 0.00

Avid Bioservices currently has a consensus target price of $12.25, indicating a potential downside of 1.96%. Given Avid Bioservices’ stronger consensus rating and higher probable upside, equities analysts plainly believe Avid Bioservices is more favorable than Eliem Therapeutics.

Summary

Avid Bioservices beats Eliem Therapeutics on 7 of the 12 factors compared between the two stocks.

About Avid Bioservices

(Get Free Report)

Avid Bioservices, Inc. operates as a contract development and manufacturing organization for the biotechnology and biopharmaceutical industries in the United States. It provides process development and current good manufacturing practice clinical and commercial manufacturing services of biologics, including clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, regulatory submission and support, upstream and downstream development and optimization, analytical methods development, cell line development, testing, and characterization services. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was incorporated in 1981 and is based in Tustin, California.

About Eliem Therapeutics

(Get Free Report)

Eliem Therapeutics, Inc., a biotechnology company, focuses on developing therapies for neuronal excitability disorders to address unmet needs in psychiatry, epilepsy, chronic pain, and other disorders of the peripheral and central nervous systems. The company was incorporated in 2018 and is headquartered in Wilmington, Delaware.

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