Financial Contrast: Societal CDMO (NASDAQ:SCTL) & CytoDyn (OTCMKTS:CYDY)

Societal CDMO (NASDAQ:SCTL) and CytoDyn (OTCMKTS:CYDY) are both small-cap medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Insider & Institutional Ownership

87.2% of Societal CDMO shares are owned by institutional investors. Comparatively, 5.1% of CytoDyn shares are owned by institutional investors. 7.6% of Societal CDMO shares are owned by company insiders. Comparatively, 0.7% of CytoDyn shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Societal CDMO and CytoDyn, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Societal CDMO	0	1	2	0	2.67
CytoDyn	0	0	0	0	N/A

Societal CDMO currently has a consensus price target of $1.80, suggesting a potential upside of 63.64%. Given Societal CDMO’s higher possible upside, research analysts plainly believe Societal CDMO is more favorable than CytoDyn.

Valuation & Earnings

This table compares Societal CDMO and CytoDyn’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Societal CDMO	$94.64 million	1.23	-$13.27 million	($0.15)	-7.33
CytoDyn	$270,000.00	577.34	-$79.82 million	($0.06)	-2.62

Societal CDMO has higher revenue and earnings than CytoDyn. Societal CDMO is trading at a lower price-to-earnings ratio than CytoDyn, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Societal CDMO and CytoDyn’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Societal CDMO	-14.03%	-23.82%	-8.80%
CytoDyn	N/A	N/A	-449.49%

Volatility and Risk

Societal CDMO has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500. Comparatively, CytoDyn has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Summary

Societal CDMO beats CytoDyn on 8 of the 13 factors compared between the two stocks.

About Societal CDMO

Societal CDMO, Inc., a contract development and manufacturing organization, engages in the research and development, manufacturing, and packaging for various therapeutic dosage forms primarily in the small molecules in the United States and internationally. The company provides end-to-end services, such as formulation development focusing on complex formulations, reformulation, physical characterization, and excipient compatibility; analytical methods development which offers a range of analytical testing capabilities, including product testing, ICH stability, method development and validation, chromatography and spectroscopy equipment, stability chambers, and microbial testing; and pharmaceutical manufacturing that provides milling, blending, compression, spray and rotary granulation, particle and bead coating, encapsulation, liquids, lyophilization, and sterile fill and finish services. It also offers regulatory support, including handling communications with the food and drug administration (FDA) and seek consultation and guidance for client FDA meetings and responses; and pharmaceutical packaging and logistics, as well as smaller-scale primary and secondary packaging, labeling and kitting options suited for clinical trial materials and development packaging needs across dosage forms. The company was formerly known as Recro Pharma, Inc. and changed its name to Societal CDMO, Inc. in March 2022. Societal CDMO, Inc. was incorporated in 2007 and is based in Exton, Pennsylvania.

About CytoDyn

CytoDyn Inc., a clinical-stage biotechnology company, engages in the development of treatments for multiple therapeutic indications. The company is involved in the clinical development of leronlimab, a novel humanized monoclonal antibody targeting the C-C chemokine receptor type 5 receptor in the areas of COVID-19, human immunodeficiency virus (HIV), Metabolic dysfunction-associated steatohepatitis (MASH), and solid tumors in oncology, such as metastatic triple-negative breast cancer. Its leronlimab is currently under phase 2 development for the treatment of NASH, HIV- NASH, and solid tumors, as well as under pre-clinical development for the treatment of HIV-PrEP and HIV-Cure. The company was formerly known as RexRay Corporation. CytoDyn Inc. was incorporated in 2002 and is based in Vancouver, Washington.