Contrasting Aadi Bioscience (NASDAQ:AADI) and Rezolute (NASDAQ:RZLT)

Rezolute (NASDAQ:RZLT) and Aadi Bioscience (NASDAQ:AADI) are both small-cap medical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

83.0% of Rezolute shares are held by institutional investors. Comparatively, 52.1% of Aadi Bioscience shares are held by institutional investors. 18.4% of Rezolute shares are held by insiders. Comparatively, 37.3% of Aadi Bioscience shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Rezolute and Aadi Bioscience’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rezolute	N/A	-70.09%	-63.08%
Aadi Bioscience	-246.06%	-71.87%	-57.28%

Volatility and Risk

Rezolute has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Aadi Bioscience has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Rezolute and Aadi Bioscience”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rezolute	N/A	N/A	-$68.46 million	($1.15)	-3.54
Aadi Bioscience	$25.07 million	1.98	-$65.76 million	($2.35)	-0.86

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rezolute and Aadi Bioscience, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rezolute	0	0	6	1	3.14
Aadi Bioscience	0	5	0	0	2.00

Rezolute presently has a consensus target price of $11.83, indicating a potential upside of 190.75%. Aadi Bioscience has a consensus target price of $1.67, indicating a potential downside of 17.08%. Given Rezolute’s stronger consensus rating and higher possible upside, analysts clearly believe Rezolute is more favorable than Aadi Bioscience.

Summary

Rezolute beats Aadi Bioscience on 9 of the 14 factors compared between the two stocks.

About Rezolute

Rezolute, Inc., a clinical stage biopharmaceutical company, develops therapies for metabolic diseases associated with chronic glucose imbalance in the United States. The company's lead product candidate is RZ358, a human monoclonal antibody that is in Phase 2b clinical trial for the treatment of congenital hyperinsulinism, an ultra-rare pediatric genetic disorder. It is also developing RZ402, an oral plasma kallikrein inhibitor, which is in clinical trial for the chronic treatment of diabetic macular edema. The company was formerly known as AntriaBio, Inc. and changed its name to Rezolute, Inc. in December 2017. Rezolute, Inc. was incorporated in 2010 and is headquartered in Redwood City, California.

About Aadi Bioscience

Aadi Bioscience, Inc., a biopharmaceutical company, engages in developing and commercializing precision therapies for genetically defined cancers with alterations in mTOR pathway genes. Its lead drug product candidate comprises FYARRO, a form of sirolimus protein-bound particles for injectable suspension for the treatment in adult patients with advanced unresectable or metastatic malignant PEComa. The company is also involved in evaluating FYARRO in cancers, including indications targeting specific genomic alterations that activate the mTOR pathway. Aadi Bioscience, Inc. was incorporated in 2007 and is headquartered in Pacific Palisades, California.