Reviewing InMed Pharmaceuticals (NASDAQ:INM) & Avalo Therapeutics (NASDAQ:AVTX)

Avalo Therapeutics (NASDAQ:AVTXGet Free Report) and InMed Pharmaceuticals (NASDAQ:INMGet Free Report) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Volatility & Risk

Avalo Therapeutics has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, InMed Pharmaceuticals has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Avalo Therapeutics and InMed Pharmaceuticals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avalo Therapeutics 1 0 9 0 2.80
InMed Pharmaceuticals 1 0 0 0 1.00

Avalo Therapeutics currently has a consensus price target of $31.67, suggesting a potential upside of 80.33%. Given Avalo Therapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Avalo Therapeutics is more favorable than InMed Pharmaceuticals.

Profitability

This table compares Avalo Therapeutics and InMed Pharmaceuticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avalo Therapeutics N/A -88.43% -73.86%
InMed Pharmaceuticals -171.13% -85.91% -70.29%

Institutional & Insider Ownership

87.1% of Avalo Therapeutics shares are held by institutional investors. Comparatively, 20.1% of InMed Pharmaceuticals shares are held by institutional investors. 3.0% of Avalo Therapeutics shares are held by company insiders. Comparatively, 0.9% of InMed Pharmaceuticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Avalo Therapeutics and InMed Pharmaceuticals”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avalo Therapeutics $440,000.00 723.55 -$35.13 million ($5.36) -3.28
InMed Pharmaceuticals $4.94 million 0.81 -$8.16 million ($6.02) -0.24

InMed Pharmaceuticals has higher revenue and earnings than Avalo Therapeutics. Avalo Therapeutics is trading at a lower price-to-earnings ratio than InMed Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Summary

Avalo Therapeutics beats InMed Pharmaceuticals on 9 of the 14 factors compared between the two stocks.

About Avalo Therapeutics

(Get Free Report)

Avalo Therapeutics, Inc., a clinical stage biotechnology company, focuses on the development of therapies for the treatment of immune dysregulation in the Unites States. The company's drug candidates include AVTX-009, an Anti-IL-1ß monoclonal antibody which is under Phase I targeting inflammatory diseases; and AVTX-008, a fully human B and T lymphocyte attenuator agonist fusion protein for the treatment of immune dysregulation disorders. It also develops Quisovalimab (AVTX-002), an Anti-LIGHT mAb which is in phase II for immune-inflammatory diseases. The company was formerly known as Cerecor Inc. and changed its name to Avalo Therapeutics, Inc. in August 2021. Avalo Therapeutics, Inc. was incorporated in 2011 and is headquartered in Rockville, Maryland.

About InMed Pharmaceuticals

(Get Free Report)

InMed Pharmaceuticals Inc., a clinical stage pharmaceutical company, develops a pipeline of prescription-based products. The company operates through two segments, the InMed and the BayMedica. The InMed segment researches and develops cannabinoid-based pharmaceuticals products. The BayMedica segment develops proprietary manufacturing technologies to produce and sell rare cannabinoids for the health and wellness industry. Its prescription-based products include rare cannabinoids and novel cannabinoid analogs for the treatment of diseases with high unmet medical needs. The company’s lead product is INM-755, a cannabinol topical skin cream, completed Phase 2 clinical trial for the treatment of epidermolysis bullosa. It also develops INM-088, which is in preclinical studies for the treatment of glaucoma; and INM-900 for neurodegenerative diseases. In addition, the company offers IntegraSyn, an integrated biosynthesis-based manufacturing approach, for pharmaceutical-grade cannabinoids; and cannabichromene, cannabicitran, cannabidivarin, and tetrahydrocannabivarin. The company was formerly known as Cannabis Technologies Inc. and changed its name to InMed Pharmaceuticals Inc. in October 2014. InMed Pharmaceuticals Inc. was incorporated in 1981 and is headquartered in Vancouver, Canada.

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