Avalo Therapeutics (NASDAQ:AVTX – Get Free Report) and InMed Pharmaceuticals (NASDAQ:INM – Get Free Report) are both small-cap medical companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Volatility and Risk
Avalo Therapeutics has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, InMed Pharmaceuticals has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Avalo Therapeutics and InMed Pharmaceuticals, as reported by MarketBeat.
| 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 |
Insider and Institutional Ownership
87.1% of Avalo Therapeutics shares are held by institutional investors. Comparatively, 20.1% of InMed Pharmaceuticals shares are held by institutional investors. 0.3% of Avalo Therapeutics shares are held by insiders. Comparatively, 0.9% of InMed Pharmaceuticals shares are held by 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.
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% |
Valuation & Earnings
This table compares Avalo Therapeutics and InMed Pharmaceuticals”s gross 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 | 691.41 | -$35.13 million | ($5.36) | -3.13 |
| InMed Pharmaceuticals | $4.80 million | 0.76 | -$8.16 million | ($6.02) | -0.22 |
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 8 of the 14 factors compared between the two stocks.
About Avalo Therapeutics
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
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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