Comparing Virios Therapeutics (NASDAQ:VIRI) and Palatin Technologies (PINK:PTNT)

Palatin Technologies (PINK:PTNT) and Virios Therapeutics (NASDAQ:VIRI) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Profitability

This table compares Palatin Technologies and Virios Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palatin Technologies	N/A	N/A	-365.57%
Virios Therapeutics	N/A	-130.33%	-115.00%

Institutional & Insider Ownership

11.5% of Palatin Technologies shares are held by institutional investors. Comparatively, 9.1% of Virios Therapeutics shares are held by institutional investors. 7.1% of Palatin Technologies shares are held by company insiders. Comparatively, 12.2% of Virios Therapeutics 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.

Volatility & Risk

Palatin Technologies has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Virios Therapeutics has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Palatin Technologies and Virios Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palatin Technologies	0	0	1	0	3.00
Virios Therapeutics	0	0	0	0	0.00

Palatin Technologies presently has a consensus target price of $350.00, indicating a potential upside of 6,150.00%. Given Palatin Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Palatin Technologies is more favorable than Virios Therapeutics.

Valuation and Earnings

This table compares Palatin Technologies and Virios Therapeutics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Palatin Technologies	$4.49 million	32.44	-$29.74 million	($1.55)	-3.61
Virios Therapeutics	N/A	N/A	-$5.30 million	($0.27)	-15.56

Virios Therapeutics has lower revenue, but higher earnings than Palatin Technologies. Virios Therapeutics is trading at a lower price-to-earnings ratio than Palatin Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Palatin Technologies beats Virios Therapeutics on 7 of the 12 factors compared between the two stocks.

About Palatin Technologies

Palatin Technologies, Inc., a biopharmaceutical company, develops targeted receptor-specific therapeutics for the treatment of various diseases in the United States. The company's lead product is Vyleesi, a melanocortin receptor (MCr) agonist for the treatment of premenopausal women with hypoactive sexual desire disorder. It is also developing oral PL8177, a selective MC1r agonist peptide that is in Phase 2 clinical trial for the treatment of inflammatory bowel diseases. In addition, the company engages in the development of PL9643, a peptide melanocortin agonist active at multiple MCrs, including MC1r and MC5r for anti-inflammatory ocular indications, such as dry eye disease, which is in Phase 3 clinical trial; and melanocortin peptides for diabetic retinopathy. Further, it is developing PL8177, an oral peptide formulation for treatment of ulcerative colitis, which entered Phase 2 clinical trials. The company was founded in 1986 and is based in Cranbury, New Jersey.

About Virios Therapeutics

Virios Therapeutics, Inc., a development-stage biotechnology company, focuses on developing novel antiviral therapies to treat diseases associated with a viral triggered abnormal immune response. The company's lead development candidate is the IMC-1, a fixed dose combination of famciclovir and celecoxib to treat fibromyalgia. It also develops IMC-2, a combination of valacyclovir and celecoxib for the treatment of managing the fatigue, sleep, attention, pain, autonomic function, and anxiety associated with long COVID. The company was formerly known as Innovative Med Concepts, LLC and changed its name to Virios Therapeutics, Inc. in July 2020. The company was founded in 2012 and is headquartered in Alpharetta, Georgia.