Analyzing Tonix Pharmaceuticals (NASDAQ:TNXP) and Valneva (NASDAQ:VALN)

Valneva (NASDAQ:VALN) and Tonix Pharmaceuticals (NASDAQ:TNXP) are both small-cap healthcare companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Risk and Volatility

Valneva has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Tonix Pharmaceuticals has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.

Earnings & Valuation

This table compares Valneva and Tonix Pharmaceuticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valneva	$197.56 million	3.20	-$130.33 million	($2.11)	-3.16
Tonix Pharmaceuticals	$13.11 million	15.53	-$124.02 million	($12.94)	-0.92

Tonix Pharmaceuticals has lower revenue, but higher earnings than Valneva. Valneva is trading at a lower price-to-earnings ratio than Tonix Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Valneva and Tonix Pharmaceuticals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valneva	2	0	1	0	1.67
Tonix Pharmaceuticals	1	0	0	2	3.00

Valneva currently has a consensus price target of $9.30, indicating a potential upside of 39.64%. Tonix Pharmaceuticals has a consensus price target of $24.50, indicating a potential upside of 106.40%. Given Tonix Pharmaceuticals’ stronger consensus rating and higher possible upside, analysts clearly believe Tonix Pharmaceuticals is more favorable than Valneva.

Insider & Institutional Ownership

11.4% of Valneva shares are owned by institutional investors. Comparatively, 82.3% of Tonix Pharmaceuticals shares are owned by institutional investors. 14.9% of Valneva shares are owned by company insiders. Comparatively, 2.0% of Tonix Pharmaceuticals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Valneva and Tonix Pharmaceuticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valneva	-110.33%	-153.20%	-39.50%
Tonix Pharmaceuticals	-548.64%	-68.99%	-61.31%

Summary

Tonix Pharmaceuticals beats Valneva on 9 of the 15 factors compared between the two stocks.

About Valneva

Valneva SE, a specialty vaccine company, develops, manufactures, and commercializes prophylactic vaccines for infectious diseases with unmet needs. It offers IXIARO, an inactivated Vero cell culture-derived Japanese encephalitis vaccine indicated for active immunization against Japanese encephalitis; DUKORAL, an oral vaccine for the prevention of diarrhea caused by Vibrio cholera and/or heat-labile toxin producing enterotoxigenic Escherichia coli bacterium; IXCHIQ, a single-dose, live-attenuated vaccine for the prevention of disease caused by chikungunya virus; and VLA2001, an inactivated whole-virus COVID-19 vaccine. The company also develops VLA15, a vaccine candidate, which is in Phase III clinical trial against Borrelia, the bacterium that causes Lyme disease; VLA1553, a vaccine candidate, which is in Phase III clinical trial against the chikungunya virus; VLA1554, a vaccine candidate targeting human metapneumovirus; and VLA2112, a vaccine candidate to treat patients with epstein-barr virus. It sells its products in the United States, Canada, Germany, Austria, Nordics, the United Kingdom, France, rest of European countries, and internationally. Valneva SE has collaborations with Pfizer, Inc. to co-develop and commercialize its Lyme disease vaccine; and Instituto Butantan for the development, manufacturing, and marketing of single-shot chikungunya vaccine. The company was founded in 1998 and is based in Saint-Herblain, France.

About Tonix Pharmaceuticals

Tonix Pharmaceuticals Holding Corp., a biopharmaceutical company, focuses on developing, discovering, commercializing, and licensing therapeutics to treat and prevent human disease and alleviate suffering. It markets Zembrace SymTouch and Tosymra for the treatment of acute migraine with or without aura in adults. Its portfolio focuses on central nervous system disorders, as well as rare disease, immunology, and infectious disease product candidates. The company’s priority is to submit a New Drug Application (NDA) to the FDA for TNX-102 SL (cyclobenzaprine HCl sublingual tablet), which has completed two positive Phase 3 studies for the management of fibromyalgia. TNX-102 SL is also being developed to treat fibromyalgia-type Long COVID, a chronic post-acute COVID-19 condition. Its TNX-1300 (cocaine esterase) is a biologic designed to treat cocaine intoxication and has been granted breakthrough therapy designation by the FDA. The company’s rare disease development portfolio comprises TNX-2900, an intranasal potentiated oxytocin for the treatment of Prader-Willi syndrome (PWS). Its immunology portfolio includes TNX-1500, which is a biologic to address organ transplant rejection and autoimmune diseases. The company’s infectious disease pipeline includes TNX-801, a vaccine in development to prevent smallpox and mpox. TNX-801 also serves as the live virus vaccine platform or recombinant pox vaccine platform for other infectious diseases, including TNX-1800 and TNX-1850, in development as a vaccine to protect against COVID-19. Its infectious disease development portfolio also comprises TNX-3900, and TNX-4200 are orally available CD45 antagonists in preclinical development. Tonix Pharmaceuticals Holding Corp. has collaboration agreement with Bilthoven Biologicals to advance TNX-801 mpox vaccine candidate; and with X-Chem, Inc. to develop broad-spectrum antivirals. The company was founded in 2007 and is headquartered in Chatham, New Jersey.