Relmada Therapeutics (NASDAQ:RLMD – Get Free Report) and Ardelyx (NASDAQ:ARDX – Get Free Report) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current ratings and price targets for Relmada Therapeutics and Ardelyx, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Relmada Therapeutics | 1 | 1 | 3 | 0 | 2.40 |
| Ardelyx | 1 | 0 | 9 | 2 | 3.00 |
Relmada Therapeutics currently has a consensus target price of $9.00, suggesting a potential upside of 134.99%. Ardelyx has a consensus target price of $14.36, suggesting a potential upside of 84.39%. Given Relmada Therapeutics’ higher probable upside, analysts clearly believe Relmada Therapeutics is more favorable than Ardelyx.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Relmada Therapeutics | N/A | N/A | -$79.98 million | ($1.80) | -2.13 |
| Ardelyx | $333.61 million | 5.67 | -$39.14 million | ($0.23) | -33.87 |
Ardelyx has higher revenue and earnings than Relmada Therapeutics. Ardelyx is trading at a lower price-to-earnings ratio than Relmada Therapeutics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
45.2% of Relmada Therapeutics shares are held by institutional investors. Comparatively, 58.9% of Ardelyx shares are held by institutional investors. 20.7% of Relmada Therapeutics shares are held by company insiders. Comparatively, 4.8% of Ardelyx 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 Relmada Therapeutics and Ardelyx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Relmada Therapeutics | N/A | -269.49% | -205.22% |
| Ardelyx | -14.20% | -36.91% | -12.57% |
Volatility and Risk
Relmada Therapeutics has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Ardelyx has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Summary
Ardelyx beats Relmada Therapeutics on 9 of the 14 factors compared between the two stocks.
About Relmada Therapeutics
Relmada Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing various products for the treatment of central nervous system diseases (CNS) and other disorders in the United States. Its lead product candidate is Esmethadone (d-methadone, dextromethadone, and REL-1017), a N-methyl-D-aspartate receptor antagonist which is in phase 3 clinical trial for the adjunctive or monotherapy treatment of major depressive disorder. The company is headquartered in Coral Gables, Florida.
About Ardelyx
Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor for the treatment of patients with irritable bowel syndrome with constipation. It also develops XPHOZAH, which is in Phase III clinical trial to reduce serum phosphorus in adults with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia; RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among patients with kidney and/or heart failure; and RDX020, for adult patients with metabolic acidosis, a serious electrolyte disorder. The company has agreements with Kyowa Kirin, Fosun Pharmaceutical Industrial Development Co. Ltd., and Knight Therapeutics, Inc. for the development and commercialization of tenapanor in their respective territories. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was incorporated in 2007 and is headquartered in Waltham, Massachusetts.
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