Financial Analysis: Ovid Therapeutics (NASDAQ:OVID) and Lyra Therapeutics (OTCMKTS:LYRA)

Lyra Therapeutics (OTCMKTS:LYRA) and Ovid Therapeutics (NASDAQ:OVID) are both healthcare companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Lyra Therapeutics and Ovid Therapeutics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lyra Therapeutics	1	0	0	0	1.00
Ovid Therapeutics	1	0	11	1	2.92

Ovid Therapeutics has a consensus target price of $6.00, indicating a potential upside of 165.49%. Given Ovid Therapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Ovid Therapeutics is more favorable than Lyra Therapeutics.

Profitability

This table compares Lyra Therapeutics and Ovid Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lyra Therapeutics	N/A	N/A	N/A
Ovid Therapeutics	N/A	N/A	N/A

Institutional and Insider Ownership

95.6% of Lyra Therapeutics shares are owned by institutional investors. Comparatively, 72.2% of Ovid Therapeutics shares are owned by institutional investors. 3.3% of Lyra Therapeutics shares are owned by company insiders. Comparatively, 7.0% of Ovid Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Lyra Therapeutics and Ovid Therapeutics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lyra Therapeutics	N/A	N/A	N/A	($19.15)	-0.01
Ovid Therapeutics	N/A	N/A	N/A	($0.31)	-7.29

Ovid Therapeutics is trading at a lower price-to-earnings ratio than Lyra Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Ovid Therapeutics beats Lyra Therapeutics on 6 of the 7 factors compared between the two stocks.

About Lyra Therapeutics

Lyra Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development and commercialization of novel integrated drug and delivery solutions for the localized treatment of patients with ear, nose, and throat diseases. It's XTreo technology platform is designed to deliver medicines directly to the affected tissue for sustained periods with a single administration. The company's product candidates include LYR-210, an anti-inflammatory implantable drug matrix for the treatment of chronic rhinosinusitis (CRS), which is in Phase III clinical trial; and LYR-220 for CRS patients with and without nasal polyps. It has a collaboration agreement with LianBio Inflammatory Limited to develop and commercialize LYR-210 in mainland China, Hong Kong, Taiwan, Macau, South Korea, Singapore, and Thailand. The company was formerly known as 480 Biomedical, Inc. and changed its name to Lyra Therapeutics, Inc. in July 2018. Lyra Therapeutics, Inc. was incorporated in 2005 and is headquartered in Watertown, Massachusetts.

About Ovid Therapeutics

Ovid Therapeutics Inc., a biopharmaceutical company, engages in the development of impactful medicines for patients and families with epilepsies and seizure-related neurological disorders in the United States. The company is developing soticlestat, a novel cholesterol 24 hydroxylase inhibitor, which is in Phase 3 clinical trials for the potential treatment of patients with resistant epilepsies; OV329, a GABA aminotransferase inhibitor which is in Phase 1 clinical trials for the treatment of seizures associated with tuberous sclerosis complex and infantile spasms; and OV350, a small molecule direct activator of the KCC2 transporter, which is in Phase 1 clinical trials for treating epilepsies. It also develops OV815, that focuses on the mutations associated with KIF1A-associated neurological disorder (KAND); OV888 (GV101), a highly selective rock2 inhibitor which is in Phase 1 double-blind multiple-ascending dose trial; OV825, has advanced to potential candidate lead identification for the rare neurodevelopmental condition HNRNPH2 (Bain Syndrome); and OV882, a short hairpin RNA gene therapy for the treatment of Angelman syndrome. The company has license and collaboration agreements with Healx, AstraZeneca AB, H. Lundbeck A/S, Northwestern University, and Graviton, as well as Marinus Pharmaceuticals, Inc. The company was incorporated in 2014 and is headquartered in New York, New York.